Research On The Legal Issue Of The Employee Shareholding Carrier In HUAWEI Company

The Employee Stock Ownership Plans, i.e. ESOP, rising in American since1950s, transplanted into England, France, Germany and many other westerncountries, and obtained good effect in practice. This plan is a kind of model thatit can enable employees obtaining the ownership of enterprise and bonuses.America took the trust fund stock as carrier. The aim of China initiallyintroducing the system of employee stock ownership is to solve the problem ofreformation on state property right, but now it’s still have many problems inpractice. The development process of China’s enterprises more fully explainedthe necessity and feasibility of legal regulation of employee stock ownership.From now on, China still has no any unified legislation on ESOP. Withlimited circumstances on number in Company Law, the single ownership modelrequires a new shareholding carrier to circumvent the law. The employee stockownership carrier is to say what kind of form for an employee to take stock.Owned carrier selection is the core once enterprises are to practice ESOP. Theshareholding carrier can be divided into two categories. They are direct stockownership carrier and indirect one. Direct stock ownership carrier means theemployee owned stocks individually. Indirect stock ownership carrier includesESOP one, trust model one, company stock ownership one, and so on. Thechoice of stock ownership form is related to the profit of employees andeffective operation of the stock ownership directly. The law should provide avariety of choices for enterprises and employees to let them choose correct oneto their own situation.In recent years, employees trust ownership become the best carrierEnterprise’s choice, the number of shareholders and the shareholders to avoidthe limit the exercise of the right to play a role in the purchase, play an importantrole in stock funds. But in the employee stock ownership of legal relations,because of the principal rights in law and in practice the uncertainty caused by the dispute, the employee stock ownership system. HUAWEI Shareholding Ltd(hereinafter referred to as HUAWEI) of the employee stock ownership plan bytrade unions, trade unions as shareholders in shareholders’ meeting shall exercisethe rights of shareholders, shareholders bear the obligation. But the unions makedecision, finally through the shareholding employees representative willeventually passed, and the shareholding employees and internal mechanism isnot representative of the union, but by the elected representatives of employeeshareholders. This union may surface to exercise the rights of shareholders, hasactually become the insider control in the company’s tools. The focus of thispaper is to trade union shares can not represent the employee shareholders cannot exercise the shareholder’s rights, nor the shareholder of the property value,needs to use the stock carriers to promote the development of new HUAWEI ofESOP.The trust ownership is widely used in HUAWEI can choose to trustownership to solve the employee stock ownership plan selection of carrier ofcriticism. Trust is the essence of the separation between ownership andownership of the statutory income. The enterprise take trust ownership, theinvestment staff name to its holdings of shares in the company trust to a trustmanagement, disposition, and income distribution, consistent with the safety andefficiency of the two principles, the contribution of staff, has many benefits. Wecan solve the financing problem of employee shareholding, trust relationship,trust institutions entrusted property financing available for guarantees tofinancial institutions, and gradually by the trust income to repay debts, solvetheir purchasing power shortage. Secondly, the trustee may through financialscheme of the entrusted property gains. In the trust contract, clearly the trusteeby the trust documents, for the best interests of the beneficiaries of the trustproperty management obligations. Thirdly, through the “vote” trust, trustee mayvote in exercising and trust property related, to help enterprises to improvecorporate governance, promoting scientific and democratic decision-making,solve individual employees to vote and management cannot implement problem.Of course, the trust shares also have deficiencies. Enterprises owned carrier shall, according to their actual situation, choose in the framework of national law, inorder to promote the employee stock ownership plan.