Legal Research On Management Buy-outs

The management buy-outs origins from the 60's and the 70's in 20th century. As a kind of innovations in the financial technology and the transfonn of property right system, it has played an important role in conforming enterprises's resources, reduction on agency costs , enhancing management abilities of enterprises and so on. Therefore, MBO has applied widely in western developed countries, as Britain and America. In our country, MBO appears at the end of 20th century, which has deepened the reform of the state-owned enterprise as a good solution, and was given extensive application. However, because of certain loopholes in the monetary system and the legal standard, some disadvantages appeared in the process of the actual operation, and it was once called to stop. To find some good ideas to solve the legal flaws of MBO in China, this article has analyzed the policies of MBO in our country, the change of its legal environment and its influence. Then combining with revisions in some related provisions of the Corporation law and the Secureties Law, it forecasts the development trend of MBO in our country, finally proposes some solutions. In my eyes, MBO should ha more development in our country, and the implementation of the new Corporation Law and the new Securities Law, has provided the important holding to the transparence operation of Chinese MBO. MBO will continue to play its unique role in the reform of the property right in state-owned enterprises and the distribution system.