Countermeasure And Advice About The Reform Of Wuhan Instrument Factory

China's state-owned enterprises have experienced a series of forms such as profit replaced by tax,contract,lease out,assets management etc since the reform of town economy system was carried out all over the country in 1984. Such forms usually made great effect in the beginning. However,the benefit of reform became digressive when several years passed. With the development of the reform,people gradually realized why the reform of China's state-owned enterprises is less successful lies in not breaking through the tie of traditional property rights system. To solve the problem of state-owned enterprises,we must reform our firm system fundamentally,and build corporation system.In the Exordium,the author hopes to give some advice in theory for the reform of Wuhan Instrument factory through the analysis of universality of corporation system,which includes the meanings of corporation system,the frame of corporation system,property rights frame of corporation,broad sense of corporation etc.The author analyzed the history,personnel,product and marketing of Wuhan Instrument factory in Chapter one,Evolution and Actuality,and discussed the problems about them,such as administrative nomination in the selection of enterprise leaders,crony in personnel system,mess in distribution system etc. These problems have resulted in the lack of qualified manager and job-hopping of technical personnel. Furthermore,the present corporation culture also restricts the development of enterprise.The author drastically analyzed the problems of the present firm system reform about Wuhan Instrument factory in Chapter two,Present Project of Firm System Reform and the Anatomy. For example,the structure of stock rights is reasonless because government holds most shares of a corporation. ESOP can't inspire the employee,especially technical personnel. As to Corporate Governance,directors took a post without being elected,but are nominated by higher authorities. Besides,there are also some problems in the mechanism of selection,prompting and restriction of enterprise leaders.In Chapter three,Countermeasure and Advice,the author tried to give reasonable answers as following to the problems in the reform project according to theory of modern firm system. He advises reducing the proportion of state-owned stock and increasing the proportion of employee stock in the setup of firm stock. Also he suggests holding the relations among shareholder convention,the Board of Directors and manager stratum in the establishment of corporate governance. Directors should be elected in shareholder convention,and the representatives of employee shareholders can also become directors. It is emphasized that the way that higher authorities nominate enterprise leaders must be changed. For the prompting of enterprise leaders,the author introduces the meaning and operation of Stock Rights Plan. For the restriction of enterprise leaders,canonical corporate governance,right bylaw and strict supervision system play an important role in the formation of restriction mechanism.