Research On Modern MBO In China

With the great changes in socialization production and productivity and great progress in economy globalization, the enterpriser's revolution is developing. After the development of MBO in the western society for over 20 years, some brave Chinese people begin to probe into MBO in order to transform the management system of the enterprise and drive the enthusiasm of the management and staff and make the enterprise more competitive. Their success and failure is worth our studying. MBO always meets many obstacles in China, and has some problems. The reason for this is not MBO itself, but the faultiness of the environment. To resolve the above problems, we must improve our system related to laws and regulations, government service, fund organization. According to the provisional regulation, MBO is forbidden in most of enterprises in China. We hope that the relevant authority can make laws as soon as possible to let MBO be exercised legally. Therefore, this article includes parts. The first part is the general introduction. The author introduces the definition, positive and negative meaning. This part tells us what is MBO and what effect upon the practice. The second part further define MBO to make it clearer. The author compares MBO with the shareholding transfer, the shareholding held by staff and joint stock so as to analyzes sameness and differences among them. The third part is comparative analysis which is the core of the article. Firstly, the author discusses the background of MBO in China and the western countries, and then compares them to analyze their differences. The special shareholding structure and imperfect lawmaking with regard to MBO in China make MBO in China very different from that in the western countries( mainly refers to MBO in America). The author analyzes the practical problems based the different lawmaking related to MBO between China and the western countries The fourth part is to find problems. Based on the above analysis, this part includes the main problems of MBO in our current legal environment including the source of stock, the price, the capital source, the ultimate shareholder and the loss of the state-owned asset. The last part is to solve the problem. This part analyzes the laws concerning MBO in China and points the positive and negative factors. With regard to the problems analyzed above, the author give her own suggestion on lawmaking related to acquisition price, the channel of collecting capital and tax preference.