Contract And Management Of Limited Company

In the practicing in collage,I found in case that there is contract and management agreement with limited company , while contract and manage the limited company on it. Contract and management system was generally used in firm reformation, but soon replaced by company. Face contract and management of limited company, I have to ask which is the difference with it and contract and management system of firm? Why it turn up? For answer this, I try to flow the meaning of from phenomenon to essence, analysis the case agreement to get the feature of contract and manage the limited company agreement, get its panorama. Then judge the alienation of the company govern system, point the change of the management to corporation. After mentioned that, I will analysis the essence on it from contract and management. Then I answer the question of the beginning, analysis the difference between management system in state firm and in corporation on essence, and point out that why management in corporation is to use the meaning that combine of power and risk and benefit, changing the management, to solve the agency problem like cheating and lazing in corporation. Finally, I believe the combine of power and risk and benefit is a good measure to the agency problem.The prologue simplicity how I found the question, look back the flourish and degenerate of Contract and management system in state firm, and ask the question.The first chapter is a summarize to contract and management agreement of limited company, in according to the right and obligation of agreement, which analysis by the four case agreement. After that, I will analysis the bifurcation whether the agreement is valid, why is valid, and point out that court has ratify it.The second chapter will discuss the affect bring to the govern system of limited company by contract and management. First period discuss the general govern system, which is separate power. Second period compare to the first, discuss the different with the govern system under contract and management, point out that the centralize of power to contactor, assignee obligation arranged by agreement, superintendence decided by agreement.Third chapter analysis the essence of contract and management of limited company. The first period's point of view is agreement. With analysis the cost of agreement, found that the cost of contractor is fee and risk, while the cost of contract-issuing party is to getting the profit of company in a limited term, as the essence of agreement to contract and management of limited company. The second period's point of view is govern system. Compared with classicality firm govern system, found the essence of contract and management of limited company is to combined power, risk, profit on the contractor.On the basic of there in before, the fourth chapter is to answer the first question: compare the difference with contract and management agreement with limited company and contract and management system of firm. First period point out the similitude, which is agreement basic, management independence, combined power and risk and profit to contractor. The second period point out the difference: meaning self-rule with government order, real or unreal on management independent, combined power and risk and profit to principal part or not. This means there is difference on essence of contract and management with limited company and contract and management system of firm. Then it proved that contract and management system is not a failure, but only can't be used to resolved the problem which the state firm faced at that time.In the fifth chapter, I answer the second question, the cause why contract and management appear in limited company. The limited company has necessary to depart the propriety and govern power, which will cause agent problem as cheating and lazing. The agent problem cause the partner intervene the govern, which conflict with the independent request of the manager. With the contract and management to limited company, the conflict can be relaxed by combined power and risk and profit to manager. This is why the contract and management to limited company appear in the practice.Finally, I analysis the malpractice of means now used to conquer the agent problem, point out that use both inspirit and deter is the revelation bring by the contract and management to limited company, which also is the way on which the company govern system is developping.