Study On Legal Issues Of Employee Stock Repurchase

Employee shares are held by employees within the company shares of the Company. Workers Share Repurchase of share repurchase is a special case, The law refers to the company's internal staff to repurchase shares held by a legal act. In practice, Share repurchases and employee stock purchase workers, workers divestment and so on are different.Stock repurchase of the main trade union has a non-unitary, the effectiveness of buy-back basis for diversity. Companies buy back shares by employees can adjust their capital structure to prevent the hostile takeover and other purposes. However, workers share repurchases and employee stock ownership in the value of conflict and lack of employee stock ownership laws, there are many legal issues in shares buy-back. Mainly reflect the repurchase of the main confusion, repurchase and procedures based on unreasonable and so on. Meanwhile, the non-objection to the request of workers and the right to repurchase shares of issues related to employee share buy-back process is worth studying place. Including non-objection to the right of workers buyback legal basis, repurchase value of legal conflicts with the company. The practice of domestic and non-objection to the right of repurchase request is blocked relief and other issues. Lack of legal system is the root problem. Therefore, building a scientific and rational internal and external mechanisms and improving employee share buy-back laws and regulations is the key to solving the problem.Specifically.The company should improve the institutional setting within the employee stock ownership and employee share buy-back legislation. Company employees are the most fundamental driving force.Employee share repurchase involve many stakeholders, only through studying share repurchases on the depth for the legitimate rights and interests can provide an effective solution to the path. Realistic solution to the problem requires more extensive attention and in-depth study, Legal issues on the staff of share repurchases can help companies continuously improve legislation and quickly push the process of the socialist rule of law. Ultimately to provide legal protection for sound and rapid development of socialist economy.