Study On The Legal System Of Conference Of Employee Shareholding

ESOP is an important part of modern enterprise system. Because of its outstanding performance on stimulating employees'working enthusiasm, improving the enterprise's economic return and straightening out the property system, ESOP is adopted by the US, Japan and other European countries. Under the ESOP, employees are the laborers, participating in the work and getting salary in the traditional employment relationship; at the same time, they are the owners of the company as share-holders. According to the aim of the ESOP designer, employees don't just work for the material conditions needed in the reproduction of labor power. They begin to have owner care, because the performance of the enterprise will directly influence the quality of their own life. In this way, the enterprise and the employees are connected tightly in terms of benefit. This is the incentive effect on both employees and the enterprise. Its restrictive effect lies in that the employees care about and participate in the management of the enterprise in order to realize the wealth maximization (mainly the return on equity), and conduct supervision on the board and the senior administrative staff.Conference of shareholding employees is a key point in ESOP. Setting up and improving laws and regulations are of great importance in fully displaying the incentive and restrictive influence of conference of shareholding employees. Conference of shareholding employees is an organization in a company, established to raise the employees'enthusiasm during the reform or founding period of the company. However, conference of shareholding employees is still in its early stage in China and relative macro-policy and laws and regulation system haven't been formed. Conference of shareholding employees in China is still in the experimental stage. In practice, blurred nature, various forms and unsound supervision system of conference of shareholding employees in China hamper its effectiveness.This paper traces the origin of conference of shareholding employees in China. Through detailed analysis it's found that conference of shareholding employees based on the workers'union, conference of shareholding employees with the nature of social organization as legal person, or conference of shareholding employees with the nature of enterprise legal person is against some items of the Company Law, and it's difficult to suit the development of legal economy; in the employee shareholding trust relationship, conference of shareholding employees, as the client, solve the conflict between practice and legal regulations in the form of ordinary partnership business; employee shareholding trust company, as the trustee, is established with the purpose of maintenance and appreciation of stock right values; shareholding employees enjoy the beneficial right of trust according to trust contract. Conference of shareholding employees with the quality of partnership business is set up in the form of shareholders' equity as capital contribution. Based on trust contract, shareholder's equity is transferred to employee shareholding trust company, and shareholder equity becomes trust property. Voting right is included in the transferred equity. The combination of conference of shareholding employees and shareholding trust company is adaptable to current legal environment, ensuring the security of trust property, that is shareholder's equity, and at the same time, improving the corporate legal person management system.Historical analysis, comparative analysis and legal analysis are adopted in this paper. This paper starts with relative conception, and discusses the existing problems of conference of shareholding employees and its causes. After considering the background of both China and abroad, the writer points out the mode of conference of shareholding employees legal system and the importance of the improving of this system, hoping to promote the healthy development of employee shareholding system.