The Research On Golden Shares In The Privatization

"Golden shares" also known as state-owned gold shares, preferred shares, preference or privilege of the privileged shares to repay. It is established in the process of State-owned Enterprise Privatization. After the reform, the government held an golden share. When Shareholders and the Board made a resolution not to perform the restructuring scheme, or infringes upon legitimate rights and interests, the Government may exercise a veto. Golden share is used to solve this problem:after the reform, the government loses the control of enterprises, and is difficult to protect national interests and public interests. Golden share play a good balance between free enterprise and state control.Golden share is widely used in Europe and many other countries. There is a lot of practical experience about golden shares, and many countries guide it through legislation. Moreover, many reflections about golden shares had been proposed. Enterprises in China are now in the process of privatization, some state-owned enterprises have introduced golden share system to resolve the specific problems they face. But, both the practice and the theory about golden share are stayed on the surface. So research on golden share has great benefit to promote the healthy development of Privatization.Firstly, this article talks about the background about golden share. Defined the concept and established the idea that privatization is an inevitable trend driven by the efficiency. Through the issues and risks emerging in this process, we know we had better to implement golden share system in our country.In the second part, the article introduces the evolution of the golden share system, including its origin in the UK, development in Europe and other regions. Integrating the various institutional arrangements and the Evaluation of European Court of Justice, this article tries to find the essence of golden shares. Golden shares are essentially a contract the government and enterprises reached.In the third part, we clarified the urgency of introduction of gold shares, and summarized various problems arising in the practice of golden shares.The fourth part of the establishment on the basis of the third part, this part gives some suggestion on how to build the golden share system in China:Firstly, construction of golden share system should be included in the legal system; Secondly, construction of China's golden share system must follow the fundamental principles of golden shares which have been established in international society; Thirdly, this part make recommendations to golden share system form the scope of golden shares, the right content, the subject of rights, the time limit of golden share and relief mechanism.