Corporate enterprise refers to a form of enterprise organization voluntarily combined by the interest subject of 3 or more than 3 persons (at least 3), through the way of joint-stock operation. It is a kind of enterprise organization form that adapts to the needs of socialized mass production and market economy development, realizes the relative separation between ownership and operation, and favors strengthening of enterprise operation and management function.

Characteristics of corporate enterprise mainly include:

1. Issue shares, as the shareholder voucher, on one hand to obtain dividend, and on the other hand to participate in the operation and management of the enterprise;

2. Establish internal organization structure of the enterprise. The shareholders’ representative assembly is the high authority of the corporate enterprise, while the board of directors is the standing body of the high authority. The General Manager shall host the daily production and operation activities;

3. Possess risk bearing liabilities. With the decentralized ownership interests, the operation risks of the corporate enterprise shall be accordingly borne by multiple shareholders jointly;

4. Possess fairly strong dynamic mechanism. Numerous shareholders concern about the operation conditions of the enterprise assets in terms of benefits, which would bring about the optimized major decision making, so that the enterprise development could be based on the interests mechanism.

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