Private Enterprise Employee Stock Ownership Legal Issues Search In China

Employee stock ownership plans has a strong positive effect to our state economic development, but as our country stock market legal system not perfect, in legal status the employees’stock was still blank, so it is necessary to perfect the corresponding legal environment before encourage and support private enterprises implementing employee stock ownership plan, we need not only remove the obstacles for the implementation of the private enterprise employee stock ownership, but also prevent the employee stock ownership plan malicious abusing due to the lack of effective institutional constraints, disrupting the entire stock market.Therefore,the author use the profession knowledge and combined with the company’s law equity understanding, draw lessons from foreign advanced experience, through comparative analysis, literature analysis and value analysis and other research methods, on the private enterprise employee stock ownership problems were analyzed, and put forward some ideas and suggestions to perfect the law.This paper consists of four parts.The first chapter talk about the concept of employ stock ownership. Employee stock ownership plan is a property organization system that the company staff through personal investment or other legitimate way to obtain this company stock, enjoy the rights of shareholders, undertake shareholders obligations. Employee stock ownership plan make employees become owners, acquire wage income as also as capital gains, combine employee income and enterprise benefit, management and staff of their own efforts organically.The second chapter elaborates the necessity and feasibility of the employee stock ownership in our country private enterprise. The private enterprise is necessary to retain talent through employee stock ownership, stabilize their workforce.The employee stock ownership in China for over30years, the practice of domestic theory gradually mature as well as law firms, accounting firms and other intermediary organization’s development, all provide convenient conditions for employee ownership.The third chapter analyses problems of the shareholding. There is three ways of shareholding, that is direct holding, the status of the ESOP association holding, company holding, but its have weakness.The source of employee stock includes increasing stock capital, share repurchase and shareholders transfer, but also lack support of law and tax.Transfer issues of employee stock have different opinion.The fourth chapter put forward the approach of stock ownership in our country private enterprise. That is reexplain the status of the ESOP association and introduce the trust fund; proposed own opinion in transfer issues of employee stock.Then put forward advice in the private enterprise in the" company law" and taxThe author thinks, the private enterprise with employee stock ownership system can enhance the competitiveness of enterprises, stabilize worker team, therefore, give private enterprises greater autonomy in compliance with the law basis can better play the advantages of this system.