Legal Problems Of The Manager Of The Company

The concept for manager’s power stems from case laws of Britain and America. With development of company governance structure and the increasing separation between ownerships and management rights, legal status of the manager’s power is evolving gradually. Manager’s power is becoming crucial rank in modern company’s governance structure, which plays irreplaceable and pivotal role and make outstanding contributions in governance. How to learn the legal status of manager’s power correctly, how to establish the corresponding institutional system, how to curb its expansion and how to achieve improvement in governance structure have been legislation research topics by companies over the world. This paper aims at better utilizing manager’s power via contrast analyses on its issues in Chinese companies to study its regulations and protection. So as to achieve the purpose of better display of manager’s power to company governance.The first part is to introduce the concept of manager’s power and its nature at the very beginning. Followed by it, it illustrates what detailed contents it refers to, which leads the scope of manager’s power and draw a conclusion:Studying and further improvement are needed in manger’s power in Chinese companies to better benefit company’s operation.The second part is to elaborate the formation process and its evolution. The evolution is clarified by6stages:The stage of board of shareholders centralism, increasing separation between manager’s power and board of shareholders, the stage of board of directors centralism, increasing separation between manager’s power and board of directors, stage of manager’s power centralism, the revolutionary stage of manager’s power.The third part is to discuss the relationships among manger’s power, shareholders, directors, chairman of board and board of supervisors from its exercise, control and limited development. Meanwhile, it quotes viewpoints and advices on various mechanisms of manager’s power from internal related main body of the company.The fourth part is the emphasis in the paper. It embodies manager’s power from Chinese company’s current regulations of manager’s power, strengthening legal measures of manager’s power, building positive maintenance system of manager’s power, improvement in control mechanism and proposes personal ideas and suggestions.This paper refers to case laws of Britain and America and explicates manager’s duty of care and loyalty from legislation, which enables the company to keep its legislation value orientation.