Improving the Organizational Forms of Private Colleges from the Perspective of the Common Benefit Company System

The“profit-making”attribute of commercial subjects shapes the classification system of legal representatives and the contents of corresponding norms in the Civil Code of the People’s Republic of China.The division of non-profit and non-commercial in the Law of the People’s Republic of China on Promotion of Privately-Run Schools not only conforms to the provisions of General Principles of the Civil Law of the People’s Republic of China,but also lays an institutional foundation for the classified management of private colleges.However,it cannot solve the problem of substantial profit-making behaviors of non-profit private colleges.As an important organizational form of enterprise organizations,the“Common Benefit Company”has changed the rule-making for traditional for-profit companies,so that the organizational form can be applied to both profit and public welfare enterprises.The functional design of the common benefit company system can now be applied to standardize the organizational structures of private colleges in China.Drawing lessons from the legislative experience regarding the common benefit company,we can enhance the organizational structures of our private colleges by implementing the common benefit company.