The Legal Construction Of China's Employee Stock Withdrawal System

This article deals with the system of employee stockownership. By analyzing the problems such as the assignment right of employee stock, the legal status of holding committee and the withdrawing price in the withdrawal system of employee stock in China, the author arrives at the conclusion that the employee stock can be transferred and cashed under certain condition and within certain scope by going through proper operating procedure. Having examined and compared the withdrawal systems of employee stock in some foreign countries, the author puts forward her suggestion on constituting China's employee stock withdrawal system from perspectives of value-orientation and principles of legislation, the choice of legislation mode and the institution and perfection of law , so as to adapt the withdrawal system to the state of China and optimize the Chinese legal system of holding stock by employees.The article falls into five sections. The first section is an overview of employee stock withdrawal system. It mainly deals with the development of employee stockownership systems both at home and abroad, analyzes the general principles of employee stock withdrawal system and the current situation in legislation on this withdrawal system in China, and brings forth the significance of study on employee stock withdrawal system.The second section is an introduction of withdrawal systems appeared in Chinese practice concerning four types of employee stock, such as the oriented offer of corporate shares, the corporate shares offered in public, the employed stock of corporate enterprises and of cooperative stock enterprises. The author also gives a brief account on the respective problems in each system.The third one makes an analysis of existing withdrawal systems of employee stocks in both corporate enterprises and cooperative stock enterprises in China on the basis of the previous section. The author concludes that employee stock can be assigned and cashed by going through proper operating procedure under certain condition and within certain scope. Her conclusion is built on her analysis of assignment right of employee stock based on the theory of labor property right, her comment on the mode of stock holding committee appeared in practice and the academic viewpoints in the theory circle, and her analysis of rationale for withdrawing prices.The fourth section introduces briefly the construction and the main content of employee stock withdrawal systems abroad, and through analysis and comparison, the author draws on experience and lessons of other countries for our reference in the construction of employee stock withdrawal system in China.The last section is the key part of this article. Through analysis and comparison of practical experience both at home and abroad, the author offers her suggestion on establishing a Chinese withdrawal system of employed stock from perspectives of value-orientation and principle of legislation, the choice of legislation mode, and the construction and perfection of law. She also emphasizes that as an important part of employee stockownership system, the specific rules and mode of employee stock withdrawal should match the nature and characters of the overall enterprise system, and only in this way can the system work smoothly. In view of the variety of enterprise systems in present China, the employee stock withdrawal system should not have only one mode correspondingly. The corporate can devise its own specific conditions and operating mode for employee stock withdrawal in accordance with its real condition, but the law should stipulate primary regulations on assignment and buyback of employee stocks , thus ensuring a mechanism that will treat the correlated subject fairly and impartially, and creating a relatively better legal environment for the development of employee stockownership system.