The Study On The State-owned Director

Compared with the general director, the state-owned director has a "double identity". On the one hand, as representative of the state-owned equity, the state-owned director has a contract with state-owned assets committee. Based on this contract, the state-owned director should consider the opinions about the plan of capital invest and the invest direction proposed by the state-owned assets committee, and report the important matters of the company to the state-owned assets committee as well. On the other hand, there is also a contract between the state-owned director and state-owned asset management company. Based on this contract, he exercises the power of authority, decision-making and supervision in the name of director, making the will of the state-owned assets committee reflected directely in the process of administration and management of the company. Because of its dual identity, the state-owned director has characteristics different to general directors:in the board of director, the state-owned director has special effect of supervision and counterbalance different to a genenaral director. With the unique perspective and the eye of practicality, the state-owned director plays a significant role of policy and stratege advisory in company. Meanwhile, the system has changed the mode that the decision-making and implementation were all ganranteed by the same people in the past, ensured the separation of the two powers. In the outside of the board, the state-owned director ensures the duty of contributor be realized well and the autonomy of business operation of the company be enjoyed lawfully. However, the current system of state-owned directors still exist many shortcomings, such as unclear qualifcations, performing their duties inadequately, not professional use of power, unscientific decision, imperfect evaluation system, unreasonable restraint of incentives, etc. Aiming the existing problems at the present situation of the system of state-owned directors, The state-owned directors system development and perfection can begin from the following several aspects:First, The State-owned directors’ selection and sending procedures; Second, richment of the powers for state-owned directors; Third, the legal responsibility of state-owned directors; Fourth, perfecting the incentive mechanism of state-owned directors. In the long run, the perfection of the system of state-owned directors could have a critical prospective effect in the new round of reform leaded by the state-owned assets committee and play an important role in the reform of corporate governance, providing a guarantee in introducing the strategic investors furtherly.