The Improvement For The Operation Problems Of MBO In The Domestic Public Companies

The property right is a difficult problem for the reform of the state-owned corporation. With the development of reform for the state-owned corporation, MBO (Management buyout) becomes the very important measure for the reform. Some public companies began this exploration earlier than some others, their successful or unsuccessful experiences could help the others to carry out their reforms. From the already happened cases, we can see so many problems in different aspects, these problems somehow already hurt the validity of MBO. How to stride over the barriers and how to find the most suitable way to do it is a highlight for the professionals. This paper want to find out the problems in the operation aspect through analyzing several cases and put forward the resolving measures. The resolving measures mainly concern about the participation mechanism and finance mechanism. The main opinion of the paper is as followings. Although there are some adverse effects in the current MBO, it can be eliminated. The standardization of the operation of MBO could guarantee the benefits of the nation and the broad shareholders, and could make the MBO done by management more legal in the practical manipulation. Thus, the MBO would be more and more efficient to the property reform of state-owned corporation.This paper is divided into three parts.The fist part is about the basic explanation for the meaning, process, pricing, financing and practice of MBO in western countries.The second part analyses the detailed situation in the domestic public companies. Several public companies are detailedly demonstrated to expose the covered problems in the operation aspect of domestic MBO.The third part is about the improvement of MBO in practice. Aiming at the domestic main problems in MBO operation, I take the mature experiences of western countries for reference and carefijlly analyze the current domestic law, then draw my resolving measures.