The Legal Analysis On ESOP Association Of China

In developed western countries, The Employee Stock Ownership Policy (ESOP) has achieved significant social functions and obtained obvious results in company's administration and improving welfare of the Employee. But, in our country ESOP has suffered obstacles both on the law and in practice. Employee Stock Ownership in our country arises in 80s 20th century ,Besides the general function of ESOP, it also plays an important role in the state-owned enterprise reform. So ESOP in China has great differences with western nations. As the general form of the stockholders is the current form of ESOP. because of its indefinite position in law and ambiguous essence,it is often foiled in our current legal system,there are lots of problems in practice. In this article will analysis the problems existing in our nation's ESOP and puts forward a method to design the Employee Stock Ownership so can it playing an active role in Employee Stock Ownership Policy. Meanwhile designed an Employee Stock Ownership Operation Mode to conformed with our condition.The article studies variety patterns of employee stock ownership of home and abroad in the way of comparison, logical and empirical. Based on our national conditions and commercial Law and other relevant rules discussed viable model in our country and make relevant legislative proposals. The thesis has five parts to comment on this issue.Part one is the basic introduction of the Employee Stock Ownership Operation Mode and analyzes the present situation of Employee Stock Ownership in our country. . The Employee Stock Ownership has a unique background in our country. On the basis of analysis the dispute, pointing out that the ESOP has great significance to our country.Part two analyze the current form of ESOP. the main form of employee stock ownership in our country can be divided into ESOP Association, trade unions and companies. each form has its different characteristics. through comparing and analysis these forms and point out the insufficiencies with each form.Part three analysis the problems faced in our country developing ESOP. The form of organization is indefinite, the management of stock is non-standard As well as the rights and obligations of employee need to be clearly.Part four discusses the choice of Employee Stock Ownership mode and its legal system frame. The conclusion is that trust is the best option in our country .Part five, The successful execution of ESOT in our country requires the support and perfection of our nation's relevant policies, so at last give some suggestions on these problems. In order to ensure the function of one institution, it need other related institutions. In our country we should solve these problems: trust registration, trust taxation, preventing the loss of state assets, as well as the regulation of intermediaries.