Reconstruct The Subject And Protection Mechanism Of The State-run Stock Rights

As the crucial component of social market economy of our China, the sate-owned enterprise has been playing and will play important role in establishing the market economy system. Thus how to operate the state-owned enterprise and national property now is becoming the core of Chinese reformation. Finally through unremitting efforts and exploration, the way of transforming sate-owned enterprise into company or corporation is selected. At present, state-run stock rights, taking place of the original rights realization form, has become the new form. When it comes to the recent practice in China, there is no doubt that the state-run stock rights are defined as another form of realizing the socialist public ownership. Therefore, it not only stands for the interests of all our people, but also it is the product of the multi-level principal agent which is the main pattern of state-run stock rights body. This kind of multi-level pattern leads to the state-owned stock rights being overwhelming when compared with other shareholders. However,this also makes the state-owned stock rights quite possible and easy to be violated. And problems like corruption, losses of assets also occurred. Now here comes the question, that how to deal with these problems? Agreement has been reached that proper reconstruction of both subject and its protection mechanism for state-owned stock rights is the key. But it is a pity that there are no related treaties in the law field. Neither experts nor scholars have reached any agreement or consensus because that they all stand by their own guns when doing relevant researches. Therefore, in order to promote the construction of socialist market economy system, to effectively operate the national assets and help to protect the interest of all our people and nation from being invaded, this paper suggests to reconstruct the subject and protection mechanism of the state owned share based on detailed analysis of its status. According to this paper, representative board of shareholders for the people would be set as the subject enforcing rights. As for the rebuilding of its protection mechanism, three aspects are included which are to perfect the corporate governance structure in the company, to consummate the legal system and to consummate the lawsuit system.