A Study On Management Shareholding In Nanfang Pharmaceutical Co. Ltd

A problem about the power of attorney comes out because of the separation of the ownership and management power in a modern company. Management share holding is an innovation in institution, which could effectively improve the management’s enthusiasm and solve the above problem by tying up the interests of shareholders, company and management. After nearly a century of exploration at home and abroad, management shareholding has been developed very well not only theoretically but also practically. The study is going to make an analysis of the present situation, characteristics as well as the development bottleneck of Chinese management shareholding based on its background and related theories. Moreover, it proves the necessity that the state-owned companies should carry out management shareholding under the present political circumstances through the typical example of Nanfang pharmaceutical Co. Ltd. The study also specifies the operation details about management shareholding in Nanfang Pharmaceutical Co. Ltd, exposes its characteristics including the framework of such model, the Valuation Adjustment Mechanism with investors and legal protection, etc.Through a study on Nanfang Pharmaceutical Co. Ltd, it shows that even the management shareholding is still under development due to the defects from policy, laws and social system. However, it will bring incomparable advantages in providing motivation to the companies’ daily running and management, and shall continually develop faster and better with the deepened national reforms and improved financial environment.