The Study On The Legal Issues Of Equity Incentive

With the establishment of the modern enterprise system,the separation of the ownership and management of the company,in order to motivate the company managers,improve work efficiency and reduce operating risk,equity incentives and other incentive measures emerged.Compared with the mature Equity incentive law system in Western countries,equity incentive is still in the developing period in our country.There are still many problems in the cooperation between law and regulation,which need to be solved,in judicial practice,the dispute of equity incentive is a dispute of labor contract or ordinary civil and commercial contract,and the problem of legal application is urgent to be clarified.At the same time,the company also urgently needs to establish the perfect equity incentive risk control mechanism,the prevention and control enterprise risk.This paper takes the case of the equity dispute between Wang and Jahwa company as an example,and uses the cases analysis method,the comparative analysis method and the literature research method.Firstly,introduce the case and the court decision,summed up and analysis the controversial issues found in the case,secondly,on the basis of this case,this paper analyzes the problems of the nature of incentive contract in the implementation of equity incentive,the flaws of legal norms,the imperfect corporate governance and the unscientific design of incentive scheme.Finally,according to the analysis of the legal issues of equity incentive,puts forward the legal relationship of labor contract which is attached to the legal nature of China's equity incentive,and the legal disputes caused by it are the labor contract disputes,and then from the legislation,judicial practice,corporate governance and legal risk control and so on to put forward perfect suggestions.