The Legal Risk Control On The Reorganization Of State-owned Property

State-owned enterprises are the backbone of our nation's economy. At the present, the reform of State-owned enterprises is being deepened further. The property reorganization of State Company is one of the methods of the structural reform. There appeared so many risks in the process of reorganization of State property, including mainly natural risks, business risks, and legal risks and so on. Furthermore, the legal risk can be categorized into many types. Once legal risk occurs, the company will hardly take control by itself, and often ends in serious results. Consequently, establishing and perfecting the prevention system of legal risk is the primary and stringent requirement of strengthening the risk management of State property reorganization. The reorganization of State property is one of the important strategies of SASAC to maintain and increase the State property. It is still in the probing stage that SASAC make policy on reorganization of State property, thus the debates keeps emerging in endlessly over how to reform Stated-owned enterprises, and there are different views on whether manage large enterprises well while ease control over small ones or manage large enterprises well while support small ones. Right now, the regulations to State property management and State-owned enterprises' structural reform are not prefect, leading to the occurrence of legal risk in the reorganization process of State property and the same time blocking the reorganization. We can learn from other countries' advanced management and reorganization mode of State property in the process of reorganization. In the respect of instituting material prevention system of legal risk, depending on the several types of reasons leading to legal risk, the writer set forth a couple of proposals as follows: to promulgate new law on State property management; to modify or perfect the current laws on State property; to establish and improve the management approach on State property; to resolve properly the civil laws and regulations in the process of structural reform on State-owned enterprises.