The big shareholders have to be restricted in order to prevent concentration of the profits of a company. Transparency and disclosure regulations have restricted the encroachment of company profits plus the board of directors is allowed to voice their opinions regarding the disclosure details.
The board of directors are the most independent and important entity under the corporate governance of China. The CSRC under the requirements of the WTO appoints the relevant board of directors which also provides the board with independence in action. The board of directors is independent so research shows that the board in many companies has appointed committees like auditing committee etc, in order to assist the board in carrying out their activities and also provide a support and foundation to their decision.
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