Study On Solving The Problem Of Insider-control By The Employee Stock Ownership System

on modern corporate system was carried out in state-owned enterprise andestablished many state-owned holding companies, and the topic of corporategovernance in the state-owned holding companies became popular. As a subsidiarysubject of corporate governance, the insider-control became a hot potato, which existsin most companies in our country, and the problems of insider-control became achallenge to the practice of the state-owned holding companies.Insider-control is the result of the separation of the ownership and themanagement right, which is also the result of the distribution of the companies'self-existent power, so that Insider-control is inevitability and rationality. However,under the high degree of concentration stock ownership structure, our companiescreated the form of"state being the single big shareholder", and the lack of the role ofthe state-owned shareholder enforced the phenomena as non-separation between thegovernment and the enterprises, which hampered the democracy in the managementand normative control of the state-owned holding companies, and then the problem ofthe insider-control came into being.Based on the high degree of concentration stock ownership structure, this paperanalyzed the particularity of the problem of the insider-control that occurred in thestate-owned holding companies, and it proposed that strengthening the supervision tothe company managers and reducing the proportion of state-owned shareholder couldsolve the problem. It introduced the stakeholder theory, and analyzed the comparativeadvantages of the employee stock ownership system in supervising of the companymanagers in the business, combined with state-owned share reduction that also havethe value in promoting the diversity of company ownership structure. Given all that, itbelieve that the employee stock ownership system should be a beneficial thinking tosolve the problem of insider-control in our state-owned holding companies.