Study Of Family Business Control Of The Game Evolution

Regard as the underdeveloped company organizing style conversingwith the social manufacture, family corporation won't draw muchattentions from academic circle. After reform and opening up, Privateeconomy has developed with the formers'reform, villages companyreform and the shift of state owned capital and become the major part ofour economy.According to modern company theory, Modern company takes rightseparation approach, manager gain some surplus obtaining right as theexchange of its human capital, to ensure the goal's consistency betweenthe manager and the company's owner so as to reduce agency cost.Surplus controlling right which belongs to owner is controlled byoperator in fact. Therefore, the family company will abandon the surpluscontrolling right through transferring some right to manager in fact if itaccepts the modern company reform. It cannot be accepted by familycompany in recent condition of lack of credit and exit mechanismbetween capital and labor in china.The paper raises another general family company control rightdifferent from recent operating right, which can avoid the problem ofproperty belonging and includes company strategy, investment, financing,asset settlement and other right which isn't determined by contract.