Study Of The Trust Solutions To The Employee Stock Ownership Plans

This paper explains the concept as well as the legal characteristics of the employee stock ownership plans, and makes a further analysis about the foundation of theory and the values of this system.An employee stock ownership plan (ESOP) is an employee benefit plan which makes the employees of a company owners of stock in that company. The performance of this plan can improve work effort, reduce turnover, and generally bring a more harmonious atmosphere to the company and it is a legal form which can realizes the owner position of workers and is a efficient way to better the governing structure of domestic companies. Comparing the advanced experiences of western developed countries ,there have some legal defects in our ESOPs now in existence in china.While trust can provide new solutions to the problems of the ESOP in china attribute to its characteristics such as separation of the interests of the trustees and beneficiaries,the independence of the trust assets and the flexibility of the trust to adapt to new needs and circumstances. So each company has a wide range of options in tailoring a plan that is best suited to its particular needs and goals.This paper also probings the trust solutions to the ESOPs such as the selection of the parties , investment trust and management trust.Considering that the legal circumstances in existence in china,our government should back some special policy on this system and some amendment should be made to deal with such problems as the beneficiary, s shareholder's stature ,share resources and repurchasing ,transferringlimitation,and tax provisions.