Building Supervision And Restraint Mechanisms Of State-owned Enterprises In Establishing A Modern Enterprise System

As enterprise supervising control mechanism being an organic part of enterprise system, an important issue arises and remains to be solved that how we shall build such a mechanism in conformity to the objective requirements of market economy when we construct modem enterprise system in our country. In western countries, enterprise supervising control mechaz3ism has becn under continuous development and improvement along with the development of enterprise system. Under modern enterprise system, it features an indirect supervising control force from shareholders, a network ike structure of supervising control on corporate operative organs, an integrated duality of supervising control and motivation as well as a m.rkctized external supervising control force, which are deduced into three famous modes: the American mode of managerial authority + market as leading supervising force, the Japanese mode of employees authority + supervision from banks, and the German mode of employees involvement + banks as leading superviaing force. Although different countries have different enterprise supei-vtsmg control mechanism, the shared point is that the supervising control on corporate operative organs has been fully developed. In recent years, the supervising control mechanism in our country is in rapid progress, yet serious problem still exist. The main problems existing in state-owned enterprises include: Absence of actual property owner and multi-level client-agent relations have led to weak property ownership control; the separation of personnel appointment right and supervising right has led to inefficient control on corporate operative organs; non-conlbnning internal operation has led to mal-flanction of supervising control mechanism; lagging of relative reform measures or non-execution of them has led to non-working supervising control system; under-developed market economy has led to under-developed self-control mechanism for senior managers. The cxistence of these problems obstructed the progress of state-owned enterprise reform and fostered corruption as a result of the vacancy of supervising control on enterprise managers. So it is important to redouble the effort to build an efficient supervising control mechanism for state-owned enterprises by studing and absorbing the successful experience of western countries and at the sante time making original innovation bascd on the actual situation in our country. (1) To integrate the building of supervising control mechanism into the overall reform of state-owned cnterpriscs, that is, to build such a mechanism that conforms to the following requirements: clear ownership of enterprise assets, defined rights and responsibilities of operative organs, enterprise as an cntity independent from government as well as scientific management; (2)To build property ownership control mechanism through property ownership rcform in state-owncd enterprises: to diversify company share holders, rcalize tradability of state-owned share and corporate share as soon as possible, extensively practice employees holding share, support bank holding share, so as to from control force on state-owned asset operative organs, (3) To formalize corporate operative organs with defined internal right-responsibility system and formalized management system, to diversify power sources and build a balanced supervising mechanism under modem enterprise system; (4) To build such systems as...