Financial And Tax Legal System Construction Of Employee Stock Ownership Plans In Chinese Enterprise

The ESOP of China is a new type of constitution of stocks described as below: workers inside the corporation purchase part of the shares of the corporation, then a special organization as a corporation of social organization is authorized to operate and manage the shares collectively, and this special organization would come into the directorate, take part in the management following to relevant laws and gain the dividends according to the percentage of the shares. This new type has played a positive role in the reform of national corporations, corporation financing and corporation management. However, during its 20 years'development, due to the singularity of resources of purchasing money, the lag of relevant law construction and the indiscipline of financial management and operation, the state of national corporations did not apparently improved. So, how to complete the construction of laws in financial taxes for ESOP becomes the critical point of study in this report.After the analysis of the current situation of ESOP, it is discovered that there are severe obstacles such as the uncertainty of the body of ESOP and the limit of fund resources for purchasing in the ESOP of China. Luckily, the implement of credit laws and the establishment of credit system supply feasible solutions to these difficulties and obstacles under the current law system. According to the credit principle, the credit relationship is established between the workers and organizations in ESOP, and it is proposed in this report that the conflicts between the system of ESOP and the current law terms in the aspect of credit, commercial banks, taxes and securities should be avoided, the legal station of ESOP should be established, and more measures should be made to perfect the registration of ESOP, lessen the taxes for ESOP benefits, heighten the prescribed amount of money for credit and reduce the limit in the ecdemic organizations.The first chapter"Summary of ESOP inside and out of China"includes birth, background, theoretical basis,the definitions, types and significance of ESOP. By the comparison of ESOP between China and America, it not only finds out the differences in financial operation and managing types, but also points out indiscipline operation such as the singularity of resources of purchasing money,the lag of relevant law construction and the simplicity of management ,and all of these have badly influenced the development of ESOP and the good running of market economy. The second chapter"the Comparison in the Fund Resource of ESOP"analyzes the issues in the aspect of fund resources of ESOP. It is proposed that credit should be taken good advantage of to solve the problems caused by fund resources according to the successful experience of ESOP in western countries. The third chapter"Construction of Credit Laws in ESOP"points out that ESOT should be adopted based on the foreign practice of legislation and the implement of credit law of China, so many obstacles in body of ESOP, financing, management,double taxes, reserved shares, transfer of shares and inheriting can be surmounted. It also supplies some advice to perfect the registration of ESOP, lessen the taxes for ESOP benefits, heighten the prescribed amount of money for credit and reduce the limit in the ecdemic organizations. The fourth chapter"the Construction of Securities Laws in Bank Taxes of ESOP"offers some discussion in aspect of law referred to bank,tax and securities. What is more, it is also advised in this report that something should be done to loosen the policies for bank credit,exert the function of regulation of taxes,confirm the qualification of the companies and workers of ESOP and perfect the system of information publicity of ESOP.Through the theories of integral analysis and comparison, this report emphasizes the connection of theory and practice and tries to combine the successful experience of western countries (especially America) and the innovation of system in economy and policy so as to prepare for the legislation in the field of finance for the ESOP of China.The original points of this report rest with the systemic study in the field of financial laws. It proposes important suggestions in the foundation, limit and legislation of ESOT, and gives advice referred to laws and regulations in the aspect of bank laws, tax laws and securities laws.