The Legal Risk Prevention Of State-owned Assets Supervision And Administration Commission’s Direct Shareholding

SASAC is "in accordance with the" PRC Company Law "and other laws andadministrative regulations fulfills duties, responsible for the ad hoc institutionsdirectly under the state owned assets supervision and management of enterprises".The legal relation of the SASAC, mainly has two aspects: one is the legal relationshipbetween SASAC and other state organs; the second isthe legal relationship betweenthe central and local state owned assets supervision and administration commission.All the SASAC is considered theSASAC directly ownership advantages, for example,can direct management,thus easier to adjust the industrial structure, and obtains thecorrespondingreturn on equity directly, which applied to the local social andeconomicdevelopment needs. But if the government SASAC become a shareholder ofthe listing Corporation, its problems and risks are not easy to solve. One,industrycompetition. If the SASAC directly owned many listing Corporation,althoughSASAC itself does not engage in specific business, but the existence of competition.Second, the legal position. When the SASAC, the interests of shareholders and othershareholders interests conflict and listing Corporationlegal litigation, civil litigationand administrative litigation is difficult to define.Thirdly, the equity transfer approval.SASAC as regulators of state-owned capital, the listing Corporation owned equitytransfer behavior of audit, but ifthe transferee the SASAC as listing Corporationequity transfer, that is to saythe SASAC will become one of the listing Corporation ofthe equity transfer,approval and for the parties to the equity segmentation, directoperation.The SASAC is ad hoc bodies, a regulation and more constraints ontheoperation behavior of the equity of the listing Corporation itself, the capital market,the most important is, not like Incorporated Company become direct investment andfinancing body. Because of the investment subject,government agencies is obviouslyinappropriate, but as the financing subject,borrowing needs to assume debtresponsibility. This paper focuses on the analysis of the legal risk prevention of directshareholding sasac. Through the analysis, the establishment of the SASAC legalrelationship, the legal nature of the analysis, combined with the direct shareholdingSASAC case, analysis of foreign state-owned assets management model, provides the reference for the asset management of the SASAC, the last fourth chapters, on thebasis ofanalysis and comparison, all aspects of the analysis of the legal the risk ofdirect shareholding SASAC and its preventive measures. Prevention, controlof legalrisk, legal risk concept should first clear. The author thinks, the enterprise legal riskcan be defined as follows: enterprise legal risk is the possibility that the enterprisesuffers losses due to the enterprise itself or its other crimes of infringement, breach ofcontract. Clearly defined, according to the definition of the point, produce can beabstract, general corporate legal risk. Despite the different enterprises in differentindustries, different specificrisk, but its origins, or a general rule. To understand thegeneral rules,contribute to the understanding of the risk and grasp. According to thedifferent characteristics of each enterprise, internal control, externalprevention twoaspects of the establishment of legal risk prevention and control system, will helpenterprises to avoid or reduce the legal risks. At the same time, there are also somework to prevent and control the risk to do. In the three aspects above, the author putsforward his opinions.