Core Viewpoint - The "White Paper on Risk Prevention in Corporate Governance of Private Enterprises (2022-2024)" released by the Beijing Chaoyang District People's Court highlights the governance challenges faced by private enterprises and suggests measures for improvement, emphasizing the importance of effective governance structures for the healthy development of the private economy [1][2]. Group 1: Governance Structure and Issues - The "Private Economy Promotion Law" effective from May 20, 2025, mandates private economic organizations to enhance governance structures and management systems, regulate operator behavior, and strengthen internal supervision [1]. - The Chaoyang District has a significant number of private enterprises, totaling 300,000, which account for approximately 90% of the market entities in the area, indicating the critical role of private enterprises in regional economic development [1]. - From 2022 to 2024, the Chaoyang Court concluded 1,525 cases related to corporate governance of private enterprises, with private enterprises being involved in 97.77% of these cases [1][2]. Group 2: Types of Disputes and Trends - The white paper identifies five main types of disputes in corporate governance, including requests for changes in company registration, company resolutions, damage to company interests, return of company licenses, and responsibilities related to company dissolution and liquidation [1]. - The number of cases requesting changes in company registration has seen the highest increase, accounting for 35.74% of governance-related cases, indicating significant disputes in registration matters [2]. - New types of disputes are emerging, particularly in technology innovation companies, involving internal governance, intellectual property contributions, and employee equity incentives [2]. Group 3: Risks in Corporate Governance - Key risks in corporate governance include discrepancies between registered information and actual control, procedural flaws in company resolutions, lack of clarity in license management, and deficiencies in governance structures leading to management control issues [3]. - The separation of ownership and management in modern corporate governance structures is highlighted as a source of operational risks, reflecting broader issues in corporate governance [3]. Group 4: Judicial Mechanisms and Support - The Chaoyang Court has implemented four mechanisms to optimize judicial protection for corporate governance, including a "multi-party mediation + expedited trial" approach and collaboration with local business associations to resolve disputes efficiently [4]. - Initiatives such as the "Typical Cases of Chaoyang for Business" mechanism and legal service packages for private enterprises are designed to enhance governance and legal awareness [4]. Group 5: Case Studies - The white paper also presents ten typical cases related to corporate governance of private enterprises, providing insights into common issues and resolutions [5].

Core Viewpoint - The Beijing Chaoyang District People's Court released a white paper on corporate governance risk prevention for private enterprises, highlighting the need for improved governance structures and management practices in the private sector [2][3]. Group 1: Overview of Corporate Governance Cases - The white paper indicates that from 2022 to 2024, the Chaoyang Court concluded 1,525 cases related to corporate governance among private enterprises [2]. - Private enterprises accounted for 97.77% of the subjects involved in corporate governance litigation over the past three years, indicating significant governance deficiencies that may hinder healthy economic development [3]. Group 2: Types of Disputes and Trends - The most common types of disputes include requests for changes in company registration, company resolutions, damage to company interests, return of company licenses, and responsibilities related to company dissolution and liquidation [2]. - The number of cases requesting changes in company registration has seen the highest increase, making up 35.74% of governance-related cases, reflecting ongoing disputes in registration matters [3]. Group 3: Emerging Risks in Corporate Governance - New types of disputes are emerging, particularly in technology innovation companies, involving internal governance, intellectual property contributions, and employee equity incentives [4]. - Key risks identified include discrepancies between registered and actual company information, procedural flaws in company resolutions, lack of clear management of company licenses, and governance structure deficiencies leading to management control issues [4]. Group 4: Judicial Mechanisms for Governance Improvement - The Chaoyang Court has implemented four judicial protection mechanisms to optimize corporate governance, including a multi-faceted mediation and expedited trial system [5]. - The court collaborates with local business associations to efficiently resolve enterprise-related disputes and provides legal service packages to private enterprises [5]. Group 5: Typical Cases - The white paper also presents 10 typical cases related to corporate governance among private enterprises, illustrating common issues and judicial responses [6].

Core Viewpoint - The article emphasizes the need for private enterprises, especially family-owned businesses, to reform their ownership structures to enhance corporate governance and mitigate risks to the capital market [1][2][3] Group 1: Corporate Governance Issues - The "one-share dominance" ownership structure prevalent in private enterprises hinders the improvement of corporate governance, leading to absolute control by major shareholders and a lack of checks and balances within the organization [2] - Unlike state-owned enterprises, where a dominant share structure is necessary for state control, private enterprises must adopt a more balanced ownership model to foster better governance [2] Group 2: Capital Market Implications - The current ownership structure of private enterprises poses potential risks to the capital market, as controlling shareholders may treat the stock market as a cash machine, leading to significant market pressure and undermining investor confidence [2] - The article suggests that private enterprises, particularly those planning to go public, should abandon the "one-share dominance" model to protect the health of the capital market and investor interests [2][3] Group 3: Recommendations for IPO-bound Private Enterprises - For private enterprises planning an IPO, it is recommended to reduce the controlling shareholder's stake to below 30% and increase the proportion of circulating shares to at least 50% of the total share capital, which would alleviate the "one-man rule" issue and lay the groundwork for improved governance [3] - Further regulations on major shareholder's selling behavior, such as restricting sales through the secondary market when their stake falls below 20%, could significantly reduce market impact and contribute to the stability of the capital market [3]