Professional Managers Incentive And Restrictive Legal Mechanisms

This article is targeting with professional manager, which, based on the professional training received or the expertise possessed, is on the administrative position in a company, compared with those share-holders and entrepreneurs. As for our professional manager system, problems are, on one hand, the deficiency of effective incentive for managers and that of disincentive institution for them, on the other hand , the inadequacy of academic research will lead to the nature consequence of ill-formed managing rights system; meanwhile the legislative defects in the area of company law bring the conflict between institution arrangement and practical operation. The problems of incentive and disincentive are even more obvious. It thus has become a significant task, how to perform appropriate incentive and disincentive for professional managers who are experts on operation and managing, to prohibit them from jeopardizing the interests of the share-holders and to harmonize the interest of them all. The reinforcement of the incentive and disincentive for professional managers is, therefore, kind of urgency. The significance of the article consists in it. There are 3 main parts, apart from the introduction and the conclusion.Part 1. The general legal analysis of the institution of the incentive and disincentive for professional manager and the present situation thereof. l.An integrated exploration on theory foundation of the incentive and disincentive for professional manager in the perspective of the humanistic requirement, deficiency of contracts and the uprising of human resource theory. 2. The demonstration of the theory foundation via the discussion on human nature, the characteristics of rights and the economic theory of agency cost.3. The problems of our incentive and disincentive for professional manager system, namely, inappropriate allocation of the managing rights, the defects of company governance structure, which are internal ones ; the inadequate competition in manager market, merchandise market and capital market, the inefficiency of reputation institution, the absence of the protection and remedy system for the managers and the defects of obligation and liability system of managers.