A Research On Management Buy-out: Application In Establish Effective Corporate Governance

Since l99l, the intemaional society has been wt a movement ofcorporate governane, Which will become a Standard of founding a corpOration inthe 2lst centUI'y For the enterprise reform in China, to establish the effeCtiyecorporate govemance is the utmost urgencyThe traditional contemPoop corporation takes seParaion of ownership andmanagement right as it charaCeriStic, which is the center of development ofcorporae govemance theory But with the condng of intelligence econondc agC,property syStem Wll change, which surely act on corpOrate govemanc< anddemand the corresponding refOrm. Corporate governance targets at mbomizingthe efiterprise valUe, and it is system arranemeni and arranement for efiterpriseproperty. TherefOre, the seParation of binary system is one Of the pefformances,which should be a recycling evolution of seParation and unity with thedevelopment of an enterprise. To establish effeCtive corpOrae govmce dePendson the elements of produCtivity level, political and econondc environment Whichthe enterprise is in, and choose a suhable model. The corpOraion of tyPe LLCburgeoning in America adopts of the unity of the binary system.Because of our paning ownership syStem, many enterprise hav ambigUousownership. To establish effeCtive corporate governance, diStinCt ownership is theprior condition, and MBO is one of efficient means. Othedse, the unity of thebinary syStem after MBO may enforce the encouragemeni and coedtment onentrepreneurs, effeCtively settle the problem of principal Agent. comParing whhtrpical intemational MBO, however, our MBO holds its own charaCters. ThispaPer eXPlores the detail problem of aPplying MBO in China, and offers somesolutions.