ABSTRACT
The procedure for establishing a chartered company was complicated and formulated on a case-by-case basis, which was noted for high transaction costs, short-termism, inefficiency and political uncertainty. In 1929–1933, the world suffered the deepest economic depression as well as political chaos of the century. The fresh communist regime in mainland China was a politically vulnerable government at that time, and could barely withstand any international intervention without flexing its military muscles. The symbiotic relationship between political and corporate governance has been evident in government organisation. China's corporate governance is plagued by political hazards, abuse of power, and lack of institutionalised articulation channels. In a politics-oriented society, political governance could shape corporate governance, but not necessarily vice versa. Generally speaking, the corporate governance movement of the Bank of China in the past century has well manifested the association between political control and corporate governance.
