State-owned equity refers to the income enjoyed by the investment subject authorized by the state as a shareholder for the corresponding shares (capital contribution ratio) formed in the company due to its investment in state-owned property, and the voting, questioning, and inquiring about the company’s account for this purpose. The sum of the powers such as the register and the disposition of the shares. The size of state-owned equity is determined by the number of shares (investment ratio) in the company in China.
In the modern enterprise system, through the separation of state ownership and corporate property rights, state ownership realizes its civil transformation in state-owned companies, that is, equity. However, although a corporate legal person is a civil subject in a market economy, and state-owned equity has the general formal characteristics of civil rights, in essence, state-owned equity still belongs to the category of state public rights.
The purpose of the operation of state-owned equity can only be a public welfare purpose. Among the specific purposes of the operation of state ownership, whether it is to develop education, protect the ecological environment, build national defense, maintain the order of market competition, promote the upgrading of industrial structure, maintain and increase the value of state-owned assets, etc. All are within the scope of the public interest. State-owned equity must reflect the specific purpose of the above-mentioned state ownership, and state-owned equity should be consistent in value with state ownership. Of course, there is still a certain difference in specific value between state-owned equity and general state ownership.
The formation of the will of state-owned equity must follow the principles, norms and procedures of public law. State-owned equity originates from state ownership, so the formation of its will to right must follow a political process, regulated by public law, and follow the principles of popular sovereignty, democratic centralism, and power supervision. Principles, appointment, dismissal and inspection of personnel also need to refer to public law standards. What needs to be explained here is that the formation of the will of state-owned equity needs to follow the principle of public law, which only emphasizes the internal operating rules of its state-owned equity.
Is the free transfer of state-owned shares good or bad?
good. Because the integration of property rights is an important way to revitalize the enterprise, the free transfer of state-owned equity is one of the special ways, which has a strong administrative meaning. Under this premise, the free transfer of state-owned equity is different from the conventional equity transfer . In addition to the low transaction cost, it also has the important feature of convenient operation, which is conducive to the rapid response of enterprises.