Highlights:
• High decree of legal compliance

• Most companies have necessary structures

• Enterprise Law of 2005 and Competition Law of 2004

Challenges:
• 'Shareholder rights' concept is in its infancy and shareholder activism is nonexistent

• Often overlap between shareholders and seniro management

• Non executive and independent directors are a rarity

• High percent of firms do not use an external auditor

• Inspection committees are often weak and ineffective

• Large number of related party transactions (few companies have guidelines)