Corporate Governance of Listed Companies in China
Self-Assessment by the China Securities Regulatory Commission
This report looks at the institutional framework of corporate governance in China through the prism of the OECD Principles of Corporate Governance and is a product of the ongoing OECD-China Policy Dialogue on Corporate Governance. By assessing a broad range of laws, regulations and codes, it provides a valuable reference for understanding how much has been achieved in Chinese corporate governance and the main ambitions of future reform efforts.
The report shows that corporate governance has improved significantly since the Chinese stock market was created in 1990, with important achievements in establishing and developing the legal and regulatory framework. The OECD-China Self-Assessment represents a thorough review of all laws, regulations and codes that relate to every principle recommended by the OECD Principles of Corporate Governance. It documents the advances in the Chinese Corporate Governance framework. Building on this report, bilateral co-operation between China and the OECD will continue to enhance the understanding of China’s corporate governance system and how it impacts on company and investor behaviour.
Shareholders' rights
A common practice of Chinese company law theorists is to divide the rights of shareholders into “self-benefit rights” and “co-benefit rights” according to the purposes of exercising the relevant right. The self-benefit right can also be called a beneficiary right, referring to the shareholders’ right to seek to acquire economic benefits. These are manifested as rights in economic benefits. Co-benefit rights can also be called shareholders’ rights to govern or participate in the relevant company’s governance, and are manifested as a number of shareholders’ rights to participate in the company’s decision-making, operations, management, supervision and control.