On Wu V. Haigher Corporation About The Dispute Of Share Trade

The Company Law of the People's Republic of China revised in 2013, which gives greater vitality and convenience to the market subjects. But as an important part of the law, it did not have a new interpretation, so it is still be in the condition of the unified regulations. With the rapid development of social economy, the development of the market is not only need the enterprise, but also requires workers to participate in, and then Employee Stock Ownership System emerges as the times requiring.On Wu v. Haigher corporation about the dispute of share trade is a typical case in the Staff Share System. Mr.Wu was an employee of Guangzhou Higher Company, he owned 27000 stocks of the company, and increased it to 60243 in 2005. Mr.Wu retired in 2003 and the company bought-back Mr.Wu'shares on the basis of the Company Charter, and they signed an agreement about the transfer of the Stock Equity. Later,Mr.Wu considered that he was a shareholder of the company, and the Shareholding Association of the company had no rights to bought-back the stocks, so the buy-back violated the Company Law of China.it appeared three kinds of disputes in the Employee Stock Ownership System such as the problem of who is the owner of the stock, the problem of the legal status of company group, and the problem of legal effectiveness of transferring the shares, There are differences between the judicial decisions from the courts in the viewpoints of supporting the employees to be shareholders or not, and the company can buy-back the employee stock or not, and then becomes many lawsuits. Through the studying of the reference about this case,we know that the employee of the company is not considered as the shareholder that can buy or sell the stocks in the market freely in the System of Staff Share, but is a shareholder of the Staff Share, and as a generation of the agency, the Shareholding Association of the company has the right to buy back the employee's stock after they retired. So the agreement of the Stock Equity transfer between Mr.Wu and Guangzhou Higher Company is legitimate and valid.Employee Stock Ownership System in China roots in abroad, it needs to resume the relevant laws and regulations to guide the judiciary case correctly, and protect the interests of the company and shareholders,which ensure the efficient operation of the market.