Management Buyouts Assets In Risk Prevention Mechanism

Management Buy-Out (MBO) has been widely used as an effective way of clarifying the property right and strengthening encouraging system in Capital Market when introduced into our country in the 20^th century. MBO in our country is widely connected with state-owned assets. It is a way of dealing with state-owned assets. During MBO's real operation, because of lacking effective supervision on MBO's Pricing System and Information Opening, and there are problems such as insider control and illegal operation, a number of managements bought state-owned property right at low prices by controlling enterprises' profits, causing a series of problems such as state-owned property drain. In the author's eyes, there are positive significance for MBO's introduction to Chinese reform of the property right. It will benefit establishing modern enterprise's system, perfecting governance structure of state-owned enterprises and improving structure of shareholder's rights. State-owned property drain in MBO's operation at present is caused by shortage of policies and laws, and should be solved by perfecting policies and laws and risks preventing system. Based on the basic theory above, this thesis is divided into four chapters to clarify the author's view, and the main content is set as the following:Chapter One: Feature of MBO. Based on the concept of Management Buy-Out (MBO) both from abroad and home, this chapter reviews and perfects the concept of Management Buy-Out (MBO). Meanwhile, the chapter analyses legal feature of MBO from the point of subjects, objects and purposes of MBO and analyses domestic feature of MBO from the structure of shareholder's rights, subjects, objects and governmental attitude.Chapter Two: Phenomena of state-owned property drain of Chinese MBO. Based on the concepts of state-owned property and state-owned property drain, this chapter makes a conclusion of main phenomena of state-owned property drain of Chinese MBO from the point of illegal deeds that are adopted by all participants of MBO and MBO's pricing system.Chapter Three: Causes of state-owned property drain in Chinese MBO. This chapter analyses main reasons for state-owned property drain in Chinese MBO from the point of shortage of related system and law.Chapter Four: Risks preventing system under the system of economic law. This chapter put forward systematic advices on risk preventing system by two basic operating methods of macro-control and market supervision, in order to protect state-owned property in Chinese MBO.