Study Of Management Buyouts Legal System

This dissertation focuses on the legal system of managementbuy-outs(MBO) with the research methods of comparative value analysisand positive analysis. In recent years, management buy-outs has come outnumerously in China's economic reformation while related statutes areobviously out of time. The purpose of this dissertation is that throughthe study of legal system of management buy-outs comparing with thesuccessful experience in other countries, the author points out thedeficiencies in China's related statutes and puts forward some practicalproposals in order to make the management buy-outs activities come tothe track of legalization. The dissertation involves four chapters : Chapter One The Basic Problems of Management Buy-outs In this chapter, the author discusses some prerequisite theoreticalproblems which are necessary to launch the study of management buy-outs.First, the author points out that management buy-outs is a sort of leverbuy-outs (LBO). As a sort of lever buy-outs, management buy-outs ispromoted by the fund gained form debt. Then, the author introduces theevolution of management buy-outs in other countries. This chapter focuseson the value analysis of management buy-outs. The value of managementbuy-outs is that management buy-outs develops the modern corporationsystem. Management buy-outs is a way to reduce the cost of agent incorporation. Management buy-outs provide participants in corporation achance to choose their status again. Chapter Two The Reason That Make Management Buy-outs Prosper inChina This chapter discusses the reason that makes management buy-outs 3flourish in China. The author thinks the reformation of state ownedenterprises and collectivity owned enterprises is the main power thatimpels China's management buy-outs. Management buy-outs lets governmentcan exit form some state owned enterprises that shouldn't beadministered by government. Management buy-outs can clarify theconfusion of ownership in collectivity owned enterprises. In this chapter,the author focuses on the function of management buy-outs in thereformation of state owned enterprises. The author point that managementbuy-outs is a good way to solve the main problem of state owned enterprises,namely absence of real owner. Chapter Three The Evolution and Deficiency of China's ManagementBuy-outs This chapter introduces the evolution and deficiencies of china'smanagement buy-outs. The author first presents the evolution of china'smanagement buy-outs. Then the author indicates deficiencies of China'smanagement buy-outs. The author considers there are three maindeficiencies in China's management buy-outs. Above all, China'smanagement buy-outs doesn't have trade system that embodies spirit ofpublicity and equity. Next, China's management buy-outs runs short offund. Lastly, China's management buy-outs doesn't have effectivesystem to monitor administrant. Chapter Four Proposals for China's Management Buy-outs Legislation This chapter is the main part of the dissertation. In this chapter,the author makes some suggestions of legislation about China's managementbuy-outs. In foreign countries, there is not a statute specially madefor management buy-outs. Management buy-outs act belongs to corporation 4acquisition and is a market trade. If there is developed legal systemabout acquisition acts, management buy-outs acts will be properlyregulated. So the legislation about China's management buy-outs is toconsummate relative statutes than make a special statute. To solve theproblems of China's management buy-outs, the author thinks thatlegislation should focus on three aspects. The first aspect is trade system of corporation acquisition. Theauthor considers that legislative should ensure corporation acquisitionhas a trade system that open to all people that have qualification andevery participant will be treated equall...