On The Functioning Mechanism Of The Management Committee

In this paper, the author discussed how a management committee can run successfully. In all these problems, the problems between the owners and the management committee are the most important. Firstly, the belief of self-governing of the owners is the foundation of the successful running of a management committee. Self-governing of the owners means that they take part in the governing their own real estate as more as possible and make decisions democratically. Secondly, it is necessary to change the cost-reward structures of the owners and the members of the management committee. Today's legal system made the cost-reward structures of the members of the management committee irrational, and the management committee can hardly work for the owners' full interests. In order to change this situation, the owners should reward the members of the management committee for their working for their interests and pay the costs of the management committee. Finally, it is important to make sure that the incorporation instead of the management committee has the rights to make decisions on major problems.