| This essay, from the perspective of law science, explores the management buy-out (MBO) and its legal supervision theory, and comes up with some practicable ideas on the legal supervision system for monitoring the behaviors of the management buy-out in China. The management buy-out(MBO) was born in western countries as Britain and U.S. in 1970's ,and was introduced into China a decade ago. Currently a spirited debate over MBO is in limelight in Chinese academic sphere concerned. In the context of promoting its development in the minds of many academicians and enterprisers, some scholars point out that a haste pursuit of MBO in China will generate some unforeseeable consequences otherwise. Admittedly, the appearance of some problems such as the wash-away of state capital and the internal trade seems to have confirmed their worries. Thereby, the Chinese Financial Ministry promulgated a Response to the Problem Concerned in the Reform of State-owned Enterprises in March, 2003; It decided to suspend the acceptance and approval of all the cases of MBO. Then , what is the proper attitude to the problems in the practice of MBO in our country? Whether it is applicable to China? How to improve the legal supervision of MBO in China? These problems set the study of MBO and its supervision theory to the foreground. It is in urgent need now to provide some theoretical basis for the governance of MBO by our government.The significance of the study in this essay can be included as: Firstly, an in-depth study of legal supervision of MBO can strengthen our awareness of the importance of a systematic legal supervision to Chinese economy. Because MBO has both merits and drawbacks to the economic development in China, a probe into it can eliminate its side-effects, thus serving as an important drive to our economy. Secondly, the study can offer some theoretical support to a more reasonable and practical MBO in China. On the basis of the legal supervision system, our reform of enterprise equity system and market-oriented economy will quicken its pace. Thirdly, MBO in China is not well monitored and regulated owing to the lack of relevant theoretical guidance. As a result, it breeds a host of problems. A study over the subject , object of the supervision, and other related problems will render a strong theoretical support to the establishment of law of stock and capital market, to the monitoring behaviors of government, to the practice of judicature. The essay includes four chapters. Chapter one gives a close account of the meaning of MBO, its legal characteristics and its significance to developing Chinese market-oriented economy. With regard to the in-progress reform of stated-owned enterprise in our country, MBO is effective in settling the problems of equity reform in the state-owned enterprises and stimulating the management, so it is justifiable to pursue MBO in China.Chapter two gives an insight into the problems in the practice of MBO in China, and points out the necessity of the application of the legal supervision to it. In China, MBO features some specials in the practice. Without an effective legal supervision system to monitor it, some uncontrollable problems will emerge such as the wash-away of the state capital, internal personnel control in the enterprises and risks in the financial market.Chapter three makes a comparison to the present three major theories in the legal supervision of MBO, and concludes that we should draw lessons from the practice of different countries, and open a new path to monitoring MBO in China on the basis of a close study over Chinese specific problems, thus constructing a more reasonable and feasible legal supervision system suited to our country. Chapter four analyzes closely on how to construct Chinese legal supervision system of MBO. Preceded by a comb of the present relevant laws and rules on the operation and implementation of MBO, as well as an exploration of the components of the legal supervision system, the essay puts forward some advisable ideas on the const... |
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