Research On The Commission System Of Individual-owned Enterprise Transaction Management

Nowadays there are three basic types of business legislation in China. The first type of legislation is according to the property ownership which contains state-owned enterprise, collectively-owned enterprise, private enterprise and foreign-investment enterprise. The second type of legislation is according to the forms of Business Organization and the nature of investor's liability which contain Company Law, Partnership Law and Sole Proprietorship Law. The third type of legislation is the legislation reflects the state's preferential policies for certain businesses which contain Township Enterprise Law and SME Promotion Law. The first type of legislation has a strong color of planned economy. The second is suited to the needs of the market economy. The third focus on the protection of vulnerable companies. The classification of second type is the main form of Chinese enterprises. From the Companies Law in 1994, to the Partnership Enterprise Law in 1997, to the Sole Proprietorship Law in 2000, it's easy from the process of China's legal system to see that the business investment requirements to the law is more relax, the freedom of investment business which investors choose is developing. In these three forms of business, Sole Proprietorship is the latest legislation but it is the oldest form of a company. Today, modern companies have the absolute superiority, many companies form are gradually destroyed when at the beginning and finally out of the market. But the individual-owned enterprises are survival in the business form of natural selection. Now, although owned enterprises in the economic life of influence and position can not be compared with the AG and Co., Ltd. But its wide distribution, large number, unmatched by any other form of business.Sole proprietorship is the investment and operation both by a natural person, enterprises do not obtain the legal status, the law does not require a minimum of capital companies, and business owners have debt on the business enterprise with unlimited liability. Management is the key to the quality of running a business. Sole Proprietorship Enterprise Law Article XIX: Investment of sole proprietorship owned enterprises can manage their own affairs and delegate or hire others to manage the affairs, the specific forms of management depends on the willing of individual investor-owned enterprises. In modern society, business ownership and management is often separated, enterprise management tend to specialization and professionalization, because of the expanding companies, personal affairs and personal energy limit and lack of professional knowledge, the investors often choose to delegate or hire person to manage the business. In that mode, between the investors and trustees they are trust relationship. The operation of this relationship related to the effects of individual-owned enterprise management. Therefore, it is important for us to study commissioned by individual enterprise and the defects were found and refined.There are three parts of this paper.The first part is the overview of sole proprietorship Authority commissioned. First, commissioning contract and clearing the meaning of commission contract, commission contract characteristics and investment contracts in the commission and the rights, duties and responsibilities of the trustee. Further details in the commission system of the individual enterprise transaction management. Investors and trustees have special rights, obligations and responsibilities in the management of individual enterprise.The second part is a sole proprietorship enterprise transaction management qualification of the parties. Relations between the parties in the qualifications of commissioned and Parties qualified in the labor relations. Relations in the commission to find qualified investors and trustees of the controversial issues that exist and propose solutions. In labor relations, specifically the investors and trustees is the relationship between employers and workers, and described the investment as an employer's rights and obligations of trustees as well as worker's rights and obligations.The third part is trustee's duties and responsibilities in a sole proprietorship business transaction management. And this part is the most important part of this paper. Management in the sole proprietorship of Trustee has two main duties, obligations or duty of loyalty. Duty of loyalty is more specific, the sole Proprietorship Enterprise Law has specific provisions. However, there are still some shortcomings need to improve. Duty of relatively was abstract and difficult to concrete content, so we must define it by subjective and the objective ways. Thus, put forward idea. Obligations need responsibility as a backup. The trustee owned enterprises and investors are responsible for management of personal affairs. For investors, the trustee is mainly based on commission assumed liability for breach of contract. For the third person, a trustee and the third person in the legal act, third party bears the responsibility when trustee subjective intent negligence caused damage. Finally, the third part also describes the obligations and responsibilities and principles for improving the trustees. For example, the principle of balance of interests, the principle of combining contract law and commission and maintaining the principle of appropriate intervention. In addition, also pay attention to law and economic law, legal norms and the commission of other laws, contracts and mode choice when perfect trustee duties and responsibilities.It has great significance to improve the individual enterprise transaction management commissioned system, to enhance the individual enterprise's competitiveness in the market, forms diversifications economy of a market and to promote economic development. The establishment, development and prosperity of a market economy is inseparable from the development of individual-owned enterprises, the establishment of China's market economy, development and prosperity also inseparable from the development of individual-owned enterprises. According to the legislative situation of China owned enterprises, perfect the management of corporate affairs commission system provide a promising space for development for the sole proprietorship in a legal point of view, sole proprietorship would have achieved well corporate governance.