China Listed Company Management Buyout (mbo) The Establishment And Improvement Of The Legal System

In 1980,the concept of Management Buy-outs was found and introduced,which has been fully developed at abroad. It has been proved by practice that Management Buy-outs plays the active roles in motivating the insiders,lowering the agency cost,improving performance of management. As in China, the outstanding characteristic of MBO is to dramatically adjust corporate ownership structure to meliorate the management motivation. So far, more than 20 Chinese listed corporations have successfully actualized MBO. As a way of merging and acquisition, corresponding policies and regulations need to be made, and inspections and administration should be strengthened to develop MBO in China and avoid some problems, such as losing state-owned assets. This essay firstly introduces the concept of MBO as well as its development, states the main steps in carrying MBO and summaries the typical modes, as well as its significance, according to the practice in China.Secondly, some representative theories related to MBO are deeply analyzed, combined with company laws as well as related theories. This part theoretically analyzed the significance of MBO and provides the theory to carry out listed companies MBO in China. Then the difference of regulations related to MBO between China and typical western countries is generally compared.At last, the essay analyses the limitations of regulations for carrying out MBO in China, and puts forward corresponding suggestions.