Several Basic Problems Of The Modern Property Rights Theory And Its Applications In The Corporate Restructuring Practice

Distinct property right, and the corporate governance based on the distinct property right is the core of enterprise reform. In another words, Enterprise reform is the property right reform. Property right is the core factor of the efficiency of economy running and maximum of social welfare, despite of the different social system. Property right decides corporate governance, and then decides all the sides of the enterprise ,including the module of organizational structure, operation, construction of core capability, and etc., The article discusses the relationship between the system of property right and development of enterprise. The conclusion reveals that property right is the principal factor that pushes the lasting development of the enterprise. The opinion is of great significance and confirms that it will be useful to instruct the reform of the national enterprises reform. Meanwhile, the conclusion also gives the criteria of enterprise reform, that is: (1) distinct property right; (2) corporate governance based on property right; (3) mechanism of incentive and constraint. Property right is a complex concept. In this article, The author explains the following concept: "property right is the right of possession, employment, revenue and transference of given property".The article is composed of 2 chapters.In chapter 1, the author studies the status of property right in modern corporate theory, indicating that property right is the most important element in modern corporate theory. The author also introduces the details of the distinct property right; it is determined by allocation of employment, independent share of income and transference of property right to everyone;Through studying the mechanism of incentive and constraint,theauthor comes to a conclusion that the Executive Stock Options(ESO) should be set up based on the share of residual claimant;The general conclusion of the chapters 1 gives the criteria of enterprise reform, that is (1) distinct property right; (2) corporate governance based on property right; (3) the mechanism of incentive and constraint;Chapter 2 is a case of enterprise reform designed according to the criteria of enterprise reform concluded in the article.