Research On Several Laws Problems Of Stock Options System

Corporate governance is not only a legal issue but also an economic one. I want to present comparative legal research on stock options based on the mechanism of balance of power. Corporate governance derives from the modern corporation's property structure. The separation of ownership and managing rights makes it necessary to establish the mechanism of balance of rights with a corporation.As we know, management is an agent of the Board, and management should be directed and monitored by the Board. By a comparative study of the management's powers, we find that management has been authorized to manage all a corporation's affairs, but it also should be noted that management's power is always restricted by the Board directly. In this sense, I suggest that we should cancel the regulations regarding management's power authorized by Company Law directly, and suggest that the Company Law should stipulate that managing rights are jointly exercised by the Board and management.The essence of stock options is that give the right of buying currency stock to manager with certain qualifications, in order to combine individual benefits with the company's long benefits. Stock options belong to expectant right. Agency theory, corporate governance theory and human capital theory is the base of stock options.The source of stock options is the major and important issue in the stock options system. For lack of relevant law criterion to company's own stock in our country. The paper, not only deals with the authorized department, procedure, executive price and exercise term of the stock options, but also studies the legalregulation on obtaining own stocks only by adopting foreign law and regulation and legal research.Stock options are the main way to motivate management, However, the stock option based motivation plan should be made in accordance with reasonable principle, Shareholders will give up more interest if it is not made under a reasonable principle. Additionally, there is no positive correlation between a motivation plan and raising corporate performance. The decision to give management a stock option based motivation plan should be made prudentially.Because the system of stock options refers to major laws such as: company law, tax law, securities law. So, it's worthy for us to research it deeply.