The Legal Research On Management Buyout In Property-right Reform Of State-owned Enterprise

Originating from the 1960s and the 1970s, MBO is prevailing in the West in 1980s as an effective means to reduce agency cost and to stimulate management. In China, MBO has aroused national interest as a way to withdraw the state-owned assets and it is becoming a hot topic of conversation on current state-owned enterprise reform.MBO is just at its preliminary stage in China. It varies from that in the west in many aspects. Just due to these differences, our MBO has not only the general qualities, but its own characteristics. Practice has proved that MBO is such an effective enterprise integration means that it will be a good outlet during the course of structural reform and reorganization of state-owned enterprise. But at the same time we have also encountered several negative problems such as the loss of state-owned assets. The most important reason for these problems lies in our system and legislation, although there are lots of factors causing them. Nowadays our economic development urgently requires the advanced system like MBO to push it forward. As far as MBO itself is concerned, it is a hard choice for us on how to improve this system to make it match with our national conditions, especially make it adapted to poverty-right reform of state-owned assets. Anyway, we should improve MBO system from legislative point, try to compensate the legal vacuum, and reduce the legal obstacles. Through the improvement of necessary legal system, we will create a good external circumstance so as to ensure its healthy development. Furthermore, we can put it in force following the speciallaw issued in the future.MBO involves in Civil Law principle, Corporate Law as well as Securities Act and so on. It is a deeply influential special juristic act in law. But currently we still have no special law to standardize it in our country. So we urgently need to legislate for MBO on the basis of its specialization as well as its legal obstacles. Firstly, modify some relevant items in Corporate Law and Securities Act so as to eliminate the legal obstacles faced with MBO. Secondly, issue State-owned Asset Law so that state-owned asset's protection will have special law to follow. The last but not the least important is to legislate on MBO, that is, to make up special management rules on MBO.In summary, MBO involves various aspects, and it is a synthetic and systematic project. Thus, we should gradually explore it theoretically and practically not only in improvement of relevant laws but also in MBO special legislation. At the same time, we should also carry it out cautiously and steadily so that MBO will play a positive promoting role in poverty-right reform of state-owned enterprise. Moreover, it will accelerate system reform and conception renovation. Therefore, MBO will stimulate our national economy's continuous steady and healthy development.