Study Of The Legal System Of China's Stock Options

With the intensification of the reformation and opening to the world of china, the corporate governance and the incentive system of the state-owned enterprises become the hot point of our attention naturally. Along with the input and development of the enterprises contract theory and the principal-agent theory, especially under the big background of the economy globalization and our entering into WTO,accompanying with the deepening of mind-liberalization and system-creation, the economic incentive to the human capital of the executives of the state-owned enterprises gradually get our comprehension, admission and encouragement ,which used to be neglected and rejected for a long time.Stock Option system is one of the effective encouraging way that adapt to the development of modern enterprises system. It closely links the managers' benefits and their contribution with the future expansion of enterprises. So it not only can embody the value of managers' human resources, but also can effectively solve the problem of principal-agent in modern enterprises. So, it is necessary for us to bring the system to China, but does its enforcement in China face any obstacles or problems, especially about the establishment in legal system, this is just what this paper will discuss.The paper includes four parts:Part 1 is the general introduction of Stock Option system, includes its notion,classification,theoretic basis and development status.Part 2 mainly introduces the exploration of its enforcement in China, includes the history of the distribution system in Chinese state-owned enterprises, the meaning of bring the Stock Option system to China and the enforcement practice in our enterprises, also the author compares domestic Stock Option system with overseas ones.Part 3 analyzes the main problems in China to enforce the Stock Option system, includes the structure defect of corporate governance,the deficiency of validity in the stock market,the deficiency of standardization in enterprise performance examination,the limitation of present legal system. Part 4 is the core of this paper, initially brings forward the legislative advices of domestic Stock Option system, includes its establishment in corporate law and securities law, its tax and accounting disposal, its establishment in labor law.