Schemes Of Stock System Reform In Southwestern Automobile Manufacturing Plant

Reforms in joint-stock system in state-owned enterprises are effective ways and measures to establish modern business system. Those methods and modes used before in reform , have made beneficial attempt on pushing forward the valuable of modern enterprise system and perfection of management structure by juridical persons. Yet, some problems still exist in many aspects. For instance, state-owned stocks are taking too many in the capital shares; the situation that joint-stock company and its group corporation is of one set-up but with two names is serious; interactions and competitions of the same trade are common . All these have brought about latent dangers to the sustainable development of stock-holding companies. Taking as an example, a typical state-owned enterprise-the Southwestern Automobile Manufacturing Plant, the author makes a thorough study of the scheme in its stock system reform and proves it. The major points are as the following:1. The paper elaborately analyses and expounds the necessity and urgency to the factory to carry out reforms in its stock system, which is of great significance to theexistence and development of the enterprise.2. It comparatively analyses the various forms of stock system reform in accordance with the actual conditions of the factory. The mode that best fits reform has been chosen out and it sets foundation for the practice of the scheme.3. According to what has been chosen to the reform, it discusses in detail how to carry out the scheme, suggests appropriate measures and solutions with regard to what might happen in the practice and predicts their subsequent consequences.In dealing with the many problems that easily appeared in the past reform process, the paper proposes some new ideas in the scheme:1. It has set a bold step in the constitution of stock right in joint-stock company. In order to overcome the problem that state-owned enterprises are taking dominant position in the stock right to form "an overwhelming stock ", it suggests relative stock control , a stock right formation and solves the problem of the redution of stock proportion for state-owned enterprises to take .2. As far as stock issue and price fixing are concerned, it creatively offers the method of ratio pricing of premium on management and settles the problem of high price stockdistribution.3. It proposes to set up independent-director system and options stimulative system so as to execute effective management to prevent the small numbers of major stockholders from harming the interest of minor ones. In this way , it can be guaranteed that the persons in the management level work hard and take full responsibility to keep the long-term sustainable development of the stock company.According to the scheme proposed, the Southwestern Automobile Manufacturing Plant is able to transform from a typical solely stock-onwed enterprise into a stock company that accords with the requirements of modern bussiness system. Therefore, the scheme is of practical significance in guiding the reform in its stock system.