Law Economic Study On The Insider Control In The Country-owned Corporate Reform

The organization structure of the corporate is suitable to the system background in which the corporate is. In the planning economic system, the chief of the corporate takes all of responsibilities related to the corporate, it is that, the chief or manager has the authority to decide all things related to the corporate. In the market economic system, the decision of the corporate is guided by the market. Modern corporate governance theories require that some subjects should be designed in the corporate and the own of the corporate and the manage of it should be separated. Generally, every corporate has its supervising organization which is called Board of Supervisors. When the distribution in the planning economic system transform to market controlling the resource, the corporate in the planning economic system must reform to satisfy the market economic. To stimulate the country-owned corporate and adapt the market economic system, from the reform and open, country-owned corporates in our country confront the challenge of transformation and reform. Country-owned corporates have lots of problems to resolve, which contain choosing the corporate form, appointing the staff, dealing with the relationship between government and corporate and so on. From planning economic to market economic, country-owned corporate should deal with the relationship between the ownership and the right to operate properly. At the beginning, the market economic system is not mature enough so that the measures related to the country-owned corporate can't satisfy the market economic.It is usual that the leaders of the country-owned corporate in the planning economic system become the new mangers of the country-owned corporate in the market economic system. In the situation, the insider control happens. The insider control results from the unequality of the information and resource in the corporate, but the continuance of the situation makes the information and resource in the corporate more unequal. The vicious circle makes the country-owned corporates confront resistance to develop. The consumption of resource in the corporate is so much that it become too hard to realize the benefits of the corporate. Moreover, the insider control brings about the corruption, which not only damages the benefit of the corporate and the country, but also destroys the confidence the public to the country-owned corporate and the trust the public to the managers in the country-owned corporate. The problems of the insider control need all kinds of aspects measures to be dealt with, which contain improving the manage level, professional quality and operational capacity of the managers in the country-owned corporate and choosing the efficiency and equity properly. Moreover, changing the relationship Country Assets Committee subordinate to the council can resolve the problems the insider control brings at some extent. Moreover, anti-administrative of the country-owned corporate is significant fundamentally to change the situation the insider control in the country-owned corporate brings. The thesis explains the content and border of the insider control through analysing the typical cases of the insider control in the country-owned corporate, distinguishing the insider control and inside control and analysing the quality of the insider control from law economic angle and definition angle. The insider control problem in the country-owned corporate need all kinds aspects measures, which contain choosing, training the staffs and reform the system. The measures coordinate with each other, make the country-owned corporate anti-administrative and choose the efficiency and equity properly so that the economic benefits of the country-owned corporate can be improved.