Why is there the separation of company ownership and management rights? Is it okay not to separate?

The owner of the company may not have the ability to run the company, but generally he will entrust a person with strong ability to run it on his behalf, so the ownership and management rights of the company should be separated. The separation of ownership and management rights is an opinion of the reform of ownership by the whole people. Its core is to keep the ownership of the means of production in the form of state ownership, but to properly separate the ownership from the management right and adopt various management forms. According to the position and function of enterprises in the national economy, the nature and scale of enterprises, enterprises are divided into several types and adopt different systems; The biggest advantage of the separation of enterprise ownership and management right is that it can make the enterprise resources and managers realize the optimal combination, give full play to the maximum benefits and bring the maximum profits to the owners.

The average owner may not know how to operate, but the assets can only be added if they are exercised, that is, the operator is the manager and president hired by the owner and shareholders, or the CEO that people often hear about. These operators have rich economic knowledge and marketing ability, but they don't have assets. The separation of ownership and management rights between companies and enterprises provides an opportunity for cooperation for those who don't know how to operate but want to find value-added opportunities for their assets and those who know how to operate but have no assets, thus solving this contradiction and realizing resources and management. As for the disadvantages, it is natural that operators may use their favorable position in managing related assets for personal gain, thus damaging the rights and interests of owners. But generally speaking, the separation of ownership and management rights is the best mode in line with the modern market economy, and its advantages outweigh its disadvantages.