Study On Dilemmas And Ways-out For Family-Controlled Listed Companies

There are,in China's security market,a growing number of listed family firms, some of which are listed in form but are in nature run under much influence of the family numbers of the founders.The unharnessed and unrestricted authority by the family members may eventually lead the company into dilemmas in operations.The over-packaged firms will be inevitably faced with embarrassing situations after being listed.It is therefore worth public concern over these companies as to their corporate governance,root of the deterioration and ways-out.This essay,taking Oriental Baolong as an example,comes to the following conclusions based on the author's comprehensive and profound analysis from legal and managerial point of view:The overpackaging,the inherent defect of the family firms,may be fatal to the future growth.The listings through fraud,once revealed,will be kicked out of the market as per relevant stipulations in the CRIMINAL LAW OF THE PEOPLE'S REPUBLIC OF CHINA.The dominance of the family members in the firms gives rise to the void of the general meeting of the stockholders,board of directors and board of supervisors while the dictatorship and unwise decision-making mechanism can only bring about managerial disaster to the firms.It is therefore imperative to make laws on the self-governance of the family firms.The family firms in dilemma are more likely to be revived through bankruptsy than by volunteering restructuring.Restructuring through bankruptsy will be encouraged by the authorities.