From Status To Contract:On Transition Of Legal Ideology To Reform State-owned Enterprises

The reform of State-owned enterprises (SOEs) is a nutshell hard to crack down on, which has experienced several periods, that is, endowing enterprises rights to attain more profits, innovating enterprise mechanism, allowing various forms to materialize public ownership, and adopting company system. The reform path was designed to separate the function of governments from that of enterprises through external legal system, however, it did not make it ideologically. Such reform is limited to doff financial difficulties by means of stock markets, only to fail corporate governance. Company law is commonly thought of as another one for SQEs, and enterprises?operation as administrative activities. That is what status-minded tradition shows in modern times. According to path dependence, such idea certainly exerts influence on SQEs reform, and frustrates its progress. Logically SOEs reform is not only a question to adopt company mechanism, but also an issue to accept transition of legal ideology from status to contract. Under new economy, SOEs reform should pay more attention to development, either respect company抯 contractual thought of observing universally binding law, or seek ad hoc treatment by separate regulation. Accordingly company law should be corrected to reform SQEs, or another law be drafted for SOEs characterized by status. That is of course better to protect the State and the society respectively, and foster an economic environment for fair and effective competition.