The Problem And Its Improvement Of ESOP In China

The legal system of Employee Stock Ownership Plan(ESOP)began in the United States during the 1950s when there was carrying out the employee share ownership (ESOP) .In the 1980s of the 20th century, Along with the Chinese transformation of the nation-owned joint-stock enterprises, the ESOP appeared. Comparing with most of western market economic countries, The ESOP legal system of our country is of an effective way to process the reform in the nation-owned enterprises, and achieve the stock rights'socialization.However, the development of ESOP in our country is facing many difficulties and legal obstacles. On the one hand, it is different with the thought of traditional corporation law. On the other hand, the law itself has blankness on ESOP. For example, the legal norms of the source of the stock, the source of the capital, the institution to hold the stock, the tax incentives .etc are so distempered that it may block the development of the ESOP in our country.This thesis is exercised comparable, logical and empirical research methodology, based on the correlation provision in current Companies Act of China, used for reference to the rational complication of the ESOP in western countries. The aim of this paper is to explore the particularity of the ESOP in our country, to analyze the legal obstacles and feasible countermeasures of exercising ESOP in China. The main contents are as following:1. The first part of this paper outlines the development of ESOP in China, America, Great Britain, Japan and France to make pavement for the following study.2. The second part analyzes the leading theories (mainly about Two-factor Theory, The Share Economy Theory, Laborer Main-body Theory, Labor Force Ownership Theory, Human Resources Theory) on Employee Stock Ownership Plan to explore the social and economic functions of ESOP in China.3. The third part of this thesis compares the ESOP between China and the US, and indicates some partiularities(mainly on supervise institution, legal norms of the source of the stock, the source of the capital, the institution to hold the stock, stock transformation) about the ESOP in China.4. The fourth part compares the ESOP and existing Corporation Law in our country, discusses the conflict and obstacle of exercising ESOP in China.5. At last, the paper proposes that the legal legislation should be improved to promote the practice of ESOP.