Study Of System Defects Within The Framework Of The Management Buyout Of State-owned Enterprises

Modern property right system is an important support of the socialist market economic system. If the socialist market economic system is to be established and completed, the reform of property right system is a crucial problem. The state-owned enterprises are the leading power of China's economy. Without the total reform of the property rights of state-owned enterprises, there would be no real new establishment of socialist market economy system. The state-owned enterprises has undergone more than 20 years of property right system reform and now there are still unsettled problems, the reason of which is the improper relationship between government, enterprises and market, and solving the market problem with no market methods.State-owned enterprises, with their particular contributions to economic society in direct participation and active modulation in social reproduction, are not only the economic phenomenon of socialism countries but also the results of market economy. If the percentage of state-owned enterprises in the whole economy is above certain level, systematically inefficient in economy will result. Therefore, changing most of the state-owned enterprises into competitive companies will be long-term target and strategic task for our country's market-oriented economy system innovation. Two basic problems should be solved in building modern enterprise system. One is about employees' enthusiasm and the other is about the selection and motivation of entrepreneurs. Management buy-out could solve the second problem effectively, but it is not only a method for motivating entrepreneurs. Management buy-out has profound historical meaning for China's enterprises, that is, it could reveal basic track of Chinese enterprises' innovation: from separation between ownership and managerial authority to the regress of syncretizing the two rights.The management acquisition is one of the property right reform in the market economy. Since its start in the 1970s, and many years of deep level reform and great changes in the company structure and legal body administration of the western developed countries, the management acquisition is widely used as an effective way...