The Research On Legal Representative Of Chinese Exclusively State-owned Companies

Although the system of the legal representative is a relative simple system among all company systems, the legal representative is the core of all company powers. This is because it possesses a great deal of powers. The exclusively state-owned companies can not obtain the power balance with shareholder structure, whereas this power balance can be gained by other state-owned companies. This is caused by two reasons. One is the specialty of the investment person and the single nature of the stock structure. The other is that, since the legal representative of the exclusively state-owned company is appointed by the administrative organization, it is easy to abuse its powers and to form corruption, which often causes loss of state assets. Such cases often happen in reality. However, it is caused not by the system of legal representative itself, but by the special stock structure and the nomination system of the exclusively state-owned company. The key reason that the legal representative abuses its powers includes two parts. One is that the abnormal powers of the legal representative exceed its normal powers. The other is short of enough supervise. Thus, in order to protect the benefit of the exclusively state-owned company and avoid the loss of state assets, we should first analyze the characteristics of the legal representative and clear its powers and responsibilities through improving the performance of the corresponding law system. One of the key problems for the legal representative is that its powers are ambiguous. This problem can be relieved by a series of reformation, for example, clearing its normal powers and responsibilities, confining its abnormal powers, using the agency rules to classify the legal effectiveness of its behavior, and regulating the corresponding responsibility. The other key problem is lack of sufficient supervise, which can be effectively supervised by perfecting a series of systems, for example, presenting its official responsibilities, checking its achievement, registering and reporting its property. Based on these proposed measurements, the powers of the legal representative of the exclusively state-owned company can be effectively normalized and the value of the state-owned capital assets can be added.