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Improve the Village-Enterprise-Based Tiered Governance Structure and Enhance the Collective Assets Management Mechanism in Line with Market Economy ——Experience and Enlightenments Drawn from Ganhechencun Village in Luohe City, Henan Province(No.57, 2018)

May 23,2018

By Zhou Qunli & Cheng Yu, Rural Economy Research Institute, DRC

Research Report, No.57, 2018 (Total 5332) 2018-3-28

Abstract: In deepening the reform of rural collective property rights system and increasing farmers’ property income, it is necessary to review the fixed assets, define the size of staff members, allot shares to shareholders and build a collective asset management mechanism in line with the development of market economy. Through pilot practice on collective property rights system reform, the Ganhechencun village in Luohe city, Henan province confirmed the qualification of the collective ownership, clarified the distribution of dividends to collective members and gradually established an open-ended equity structure in the collectively-owned enterprises. By establishing the tiered-governance structure, the village has straightened out its relations with the enterprises, made the management right of collective assets more flexible, enabled the enterprises to grow bigger and improved villagers’ welfare level. Its experience shows that after the collective property rights system reform, efforts need to be made to further flesh out the village-enterprise-based tiered governance structure system, establish a standardized system on collective assets management, supervision and proxy, form an open, inclusive, and effectively balanced modern enterprise management system and strengthen the village-enterprise-based tiered governance mechanism.

Key words: collective economy, reform of collective property system, village-enterprise-based tiered governance