Reflections by the "Battle for Control of GOME"-Based on Corporate Governance and Internal Control Perspective

Continued more than two years, the "battle for control of the GOME" finally came to an end. By the impact of this battle, as the industry leader in home appliance retail chain, GOME, paid a heavy price: a loss of market opportunities, low staff morale, the company developed slowly. Based on corporate governance and internal control perspective, the "battle for control of GOME" reflection that the origin of the battle for control is the absence of checks and balances relationship in corporate governance and the battle for control of has a direct impact on the internal control objectives implementation. In the "You have me, I have you" chimeric relationship, Corporate governance dominate the development of internal controls and the achievement of control objectives. Finally, this paper proposed the establishment of governance-oriented internal control, and actively explored the Board of Directors system and the supervisory system of the Board of Supervision dominate.