The Legal Supervision of The MBO about Chinese Listed Company
Abstract
Management buyout(MBO)is that the management of the target company use the finance to buy its stocks in order to get or maybe to get the actual control of the company,that is the management of the company come from the pure managers into the managers and stockholders,and change the structure of owner,control and property so that thay can rebuild this company and get the expected profit.MBO is important to clear the property of state enterprises,reduse the proxy cost of the company,stimulate the human resource of managers and make the state-owned capital with-drawed from market as a kind of innovative system,but there are lots of disputes wether carrying out the MBO or not because of the existing law is so flowed that the practices of MBO face a series of risk of violation.first,this article was based on the law and economics to search for the necessary of the theory of MBO;second,it analysed the comparisons of MBO in China and in western countries through explored the proper meaning of MBO of western countries and MBO of listed companies in China in operation;third,based on the defects of China’s systems it analysed a series problems of MBO of lised companies and explored how the systems were made and what defects they had;the last,it offered a certain number of ideas of legal supervision about MBO of listed companies in order to ensure that aspects of MBO which carried out within law.