Study Of The Transformation Of State-owned Enterprises Into Companies

In the light of analyzing their necessity and rationality, this article focuses on expounding the emphases, difficulties and institutional establishment in the course of corporation system reform of governmental enterprises and the author gives her own opinion on how to perfect the prevailing the Corporation Law and relevant legal system thereof in China on the basis of the existing legal problems in the course of joint - stock of governmental enterprises.From the analyzing the necessity and rationality, it can be seen that one of the most serious maladies in the traditional planning system is the lack of vigor and management freedom of the governmental enterprises, which brings on the low economic returns. Therefore, the overall goal of deepening the corporation system reform of governmental enterprises is to enhance the vigor of the governmental enterprises. The corporation system reform is the main pattern of establishing modern corporation system and boosting the vigor of governmental enterprises.The core of corporation system reform is the structure of corporative administration. The primary problems existing in the present corporative administration structure are as follows:a) The progress of the conversion from one main body of property right into multi -ones remains low, the system reform of property right of governmental enterprises can' t be really enforced as well as the restriction and balance of multi - bodies is lacked in enterprises' management.b) The management system of state - owned assets remains in the faulty condition, there is some bias in the understanding of the statue of capital holder as well as the operation & supervision of the capital after the state - owned capital is authorized so that the necessary methods and measures are in need.c) The incentive mechanism for the operators of governmental companies is lacked. For example, there are only fixed annual salaries in some enterprises without incentive mechanism so that the performance of the operator does not correspond with his/her income.d) The poor supervision inside the state - owned enterprises causes " internal control" so that the restriction and balance of the operators' power hardly can be formed.e) The structure of corporative administration is of imperfection. In practice, the board of director usually restricts the managing group and supervisory committee and the supervisory committee cannot exercise the supervision function effectively.f) The relationship between the Party group and the structure of corporative administration isn' t clear.To the above - mentioned problems, the article points out the strategies of the structure forming of corporative administration in the incorporation of governmental enterprises. Firstly, the structure shall be conformed to the reality in China. Secondly, the relationship among the holder, operator and worker shall be settled accurately. Thirdly, the normative structure of corporative administration also needs the external administrative mechanism system in the condition of perfection, i.e. fair and sufficient competitive condition as well as perfect legal condition in the market, true detachment of enterprises from the government and government interference at the possible least. Fourthly, the statue and function of the worker shall be strengthened in the structure of enterprises' corporative administration. Fifthly, the core function of the expert and professional enterpriser shall be clarified in the structure of corporative administration.In the course of corporation system reform of governmental enterprises, the emphases shall be stressed and the difficult problems shall be settled. After expounding the emphases and difficulties in the reform, the author thinks that the highest priority in the reform should be given to the definition of the function of government - asset holder in coming period of time. The difficulties in the reform are how to form the fit main body of state property right for the corporation system, to reduce the proportion of state - owned...