On The Rule By Law Of State-owned Company Management

State-owned Companies are the backbone of China’s national economy. As an integral part of the economic system, China’s state-owned company reform develops along with the pace of open reform. Looking back at the state-owned company reform, the state planning system is from a high degree of state-owned stages to the phase separation of ownership, and then to the stage of pursuing the establishment of "autonomous, self-financing, self-development, government-company separation" of the modern enterprise system. How effective to use the right of the state business, and enhance market competitiveness of State-owned Companies and improve the performance of State-owned Companies to play a pivotal role in state-owned economy has been the focus and difficulty of state-owned company reform. Currently, during the process of establishing a modern enterprise system, there appear the following abnormal phenomenons of using the right of state-owned company:break or weaken the control of ownership, impact the national macro-control policy, illegally shift production costs and business risks and seek special protection of executive power. With the combination of the right of state-owned enterprise theory, the analysis of State-owned Companies to exercise unusual reasons, and reasonable related successful experience from abroad, we can offer a proposal from the above three aspects to standard the right of China’s State-owned Companies. First, by building a modern corporate governance structure and professional, independent and effective board of directors, we can achieve the goal of separate government from enterprises, and protect the independent exercise of the right to operate State-owned Companies. Second, by improving the state-owned equity shareholders represent system and the board of directors of the State-owned Companies evaluation mechanism, we can regulate the effective using the right of operate State-owned Companies. Last, through the improvement of the management of State-owned Companies legal responsibility system and build the state-owned assets of the public welfare lawsuit security mechanism, we can consummate the state-owned company managers’external monitoring mechanism.