ABSTRACT

Chapter 2 studied the various models of corporate governance and came to the conclusion that a more suit able model of corporate governance for China is the Stakeholder model. It is considered more suit able because it is an all-inclusive model of governance which embraces the interests of various stakeholders including shareholders, directors, managers, employees, creditors, bankers and customers. It is more appropriate than the Shareholder Value model in the Chinese context, as the Shareholder Value model calls for the maximization of returns to the shareholder only.