Legal Study On Stock Option System

Under the circumstance of modem corporate system, the separation of ownership and management entails questions on consigning and entrusting, which led to the creation of a stimulating mechanism through which the manager would behave in the stockholder's interest. As a result, the stock option system emerges as the time requires. This text starts with the basic theory of the system, proceeding with the analysis of the problems and instructive attempts in the implementation of our country's stock option system. It also brings forward ideas about the adjustment and improvement of the stock option system under current environment. There are four chapters in this paper besides introduction and tag.Chapter Two: summery of the stock option systemThis chapter starts with the introduction of the option and standard conception of the stock option, importing the concept of stock option as a stimulating system and comparing and analyzing the relative notions, in order to clarify the connotation of the stock option. In succession, it sets forth the legal characteristic and feature of the stock option by introducing the implementation course of the stock option system.Chapter Three: the theoretical basis of the stock option system.This section starts mainly with the necessities and importance of introducing the stock option system. Recommending the theoretical basis of the stock option system: the theory of consigning and entrusting and the theory of human capital.Chapter Four: the practice of the stock option system in China.This chapter can be divided by a watershed, which is the coming on of Measures on listed company ESOP in 2006. It systematically retrospects the implementation of the stock option in China and the condition of enforcing this system in China's listed company after the measures putting into force.Chapter Five: Suggestions to improve China's stock option system.In this chapter, discussions are held from three dimensions. Firstly, it recommends the two current rules of law on regulating the stock option system and delves into the deficiencies of them. Second, analyzing the shortage of matched tax law, accountant law and labor law and put forward countermeasures. At last, suggestions to perfecting the exterior environment of carrying out stock option system, including corporate governance structure, security market and constructing market of professional manager.