On The SASAC Investor Rights

Since the establishment of The SASAC, the problem of its nature in the academic has been heatedly discussed and there are three views formed:The SASAC as civil subject、The SASAC as administrative subject and The SASAC with the nature of private power and administrative power. However, considering the specific national condition of China and legislative practice, The SASAC shall be purely as contributive person and no longer has the administrative functions. The system of state-owned assets supervision shall be constructed in the center of The SASAC under the condition of socialist market economy. The main reason of The SASAC appointed purely as contributive person is that the right of the contributive person of The SASAC comes from the State Council and the people’s governments at various levels. In the case of China’s current system of state-owned capital operation, there is a multilayer principal-agent chain. The SASAC only enjoys equity through to investment enterprises, exercises rights of the contributive person through holder’s meeting on the premise of self management of enterprises and doesn’t directly intervene the production and management activities of enterprises. The SASAC as the contributive person supervises contributed enterprises which is the behavior of the upper principal exercising private rights and is not the behavior of administrative supervision and management with the nature of the public management. At the same time, the nature of contributive person of The SASAC determines that its rights object of contributive person can only be state-owned operating assets. In May1,2009,"enterprise state-owned assets law" carry out formally, which clearly defines the legal status of The SASAC as contributive person and this law clearly set what is the rights of contributive person of The SASAC:The right of option of operators、Major decision-making right and Right to income distribution. After nearly three years of judicial practice, there are some problems in the actual operation which The SASAC uses the rights of contributive person. Such as the lack of related procedures dues to no operation、 substantive scope which is not clear causes human intervention etc... therefore, opinions of perfecting the right of contributive person of The SASAC must be put forward from strengthening the program construction and sounding entity system. In addition, in order to reduce the risk of the SASAC as an agent and prevent the abuse of rights, our country should construct the supervision system to the right of contributive person of The SASAC from adult supervision, administrative supervision, audit supervision, social supervision and so on.