Trustee Nature Of Employee Shareholding Committee

Purpose of StudyEmployee shareholding option planning ("ESOP") originated from USA and has fast developed now in Europe, America, Japan and even some countries and regions in Africa. ESOP in China was born of spontaneity and has been further developed and improved along with the development of Chinese shareholding economy. The practice of ESOP, in China and abroad, has proved that ESOP has great effect in triggering the initiation and creativity of the employees and improving economical benefit of the enterprises. It particularly meets the fundamental requirements of the Socialist Market Economy in combining labour with means of production and to some certain extent, making labourer owners of the enterprise. Therefore, it is an irresistible trend to develop ESOP. However, how to develop the system, in particular, how to function the very basis of the system, Employee Shareholding Committee ("ESC"), is an issue widely concerned and in fact, disputed. The author is of the opinion that provisions of existing local regulations on the nature of ESOP are wrong. The wrong provisions on the organizational structure, rights and obligations of ESC will eventually obstruct the positive function of ESC. For this reason, the author put forth the point that, on the nature and functions of it, ESC shall be a trustee with responsibility to hold the share for the interest of the beneficiaries (employees). ESC shall hold the position of employee shareholders and overcome the legal obstacle which the owners of relevant inside employee-owned stock may encounter when they exercise their voting rights or other rights of shareholders. Besides, ESC shall also make it possible for the employee shareholders to supervise ESC pursuant to the trust agreement. Based on its obligations of trust, ESC will exercise its rights carefully and diligently in order to have ESOP well functioned. Opinions different from the existing regulations, on the articles association and organizational structure of ESOP and its relationship with other organizations in the company is put forward hereby by the author. The author hope that the relevant persons will correct the wrong idea in this respect and make it possible to issue new laws for the purpose of justice and fairness of law.Scope and Methods of StudySince ESC exists in different types of joint stock companies and develops differently therewith, different legal issues are involved. In order to grasp the very basic and give a thorough explanation to all legal issue involved and, in the mean time, avoid too detailed discussion, the author chooses the ESC in the limited liability company and joint stock limited companies stipulated in Company Law of the PRC as the main subject. The author focuses his study on the history, nature, rights, obligations and functions of ESC, and its relation with the other organization of the company, etc., the part which mainly reflects the social regulations. As to the determination of stock of employees, funds raising, dividends, etc., which are more technical regulations, will not discussed in this thesis. Literature analysis is, as a method of study, more frequently adopted in writing this thesis. Because ESOP is new in China, it is necessary for the author to collect information widely and restructure a more complete structure to excel the present achievements. Besides, the author mainly discusses ESOP in accordance with trust law. Because of the absence of trust law in China, means of comparative law is also adopted in this study. Foreign jurisprudence is referred to clarify some wrong ideas in this area. Furthermore, the primary creation of ESOP lies in the re-cognition of the property title, so this thesis inevitably involves some economic analysis.Conclusion The conclusion of this thesis on the study of ESOP is not consistent with the prevailing cognition, and I don't think that it is the result of intentionally trying to be different. It is a conclusion based on serious study on ESC. I believe this thesis is...