Research On The Legal Status And Operation Mode Of The Employee Stock Ownership Association In China

The reform of state-owned enterprises is a process of trial and error,and the Employee Stock Ownership Association which stemmed from it is spontaneous and unstable.In judicial practice,due to the unclear legal status of the Employee Stock Ownership,judge of the people's court have tried a large number of cases as “unbalanced” cases because they do not have a unified reference of the legal basis.The value of this article is to provide the judge with a clear legal basis for judgement when they hear cases,and to maintain judicial justice by studying the legal statues of the Employee Stock Ownership Association and improving the specific operation patterns.The author begins with a comparative analysis of two cases in order to emphasize the importance of clarifying the legal status of the Employee Stock Ownership in judicial practice and to list lawsuits caused by unclear legal status.This refers directly to the subject of this thesis.The first part introduces the background and development of the Employee Stock Ownership,and proves the necessity of its existence by referring the Human Capital Theory and the Stakeholders Theory.The second part describes the state of the Employee Stock Ownership in China and analyzes existing problems and advantages of its legal forms.In the existing three legal patterns,Social Organization as legal person has been banned by the Ministry of Civil Affairs.The Unincorporated Organizations relying on the trade union is no longer applicable to the existing legal system because the trade union is a non-profit organization and unincorporated organizations can be regarded as an independent civil subject.The enterprise legal person pattern can not be universally applied due to the company law which limits 50 shareholders in the limited liability company.Therefore,the legal status of the Employee Stock Ownership Association is unclear.The third part,the author refers foreign models to discuss the advantages and disadvantages of the Trust system,the Partnership system and the Internal Employee Autonomy Organization and designs reasonable and reliable operating pattern for investors,in order to bring convenience to the development of enterprises.Finally,based on the General Provisions of the Civil Law,the author innovatively proposes that the Employee Stock Ownership Association should be an Unincorporated Organization and its operating pattern should be designed under the premise of the illegal person organization.The author will redefine the Employee Stock Ownership Association under the Trust system,in order to solve the problems left over by history.