Discussion the Relationship between Shareholders and Executives in Modern Company Management Mode

Abstract

The core question of the corporate governance is the relationship between insider’s self-interest and agency costs, the structure of corporate governance should depend on the character and speciality of the company. A comprehensive consideration on the human interests and agency costs is necessary. Under the premise of protecting the interests of minority shareholders, we need to obtain the balance among these legal interests. Governance model of the Corporate law should be designed to guide enterprises to unleash their own internal power. The most appropriate model of governance need to be concordant with the capital structure, corporate governance philosophy and other cultural elements. Company Law should have less mandatory provisions. The model designed in Company Law should not be a single one, but be a variety of options.