What Is an Employee Trust?

Employee Stock Ownership Trust (ESOT) refers to a trust arrangement in which the shares of the company purchased by employees are entrusted to a trust institution for management and use, and the trust income is enjoyed after retirement. Part of the trust funds handed to the trust institution comes from employees. The other part of the salary is funded by the company in the form of bonuses for employees to purchase the company's stock. The concept of a corporate employee stock trust is similar to a regular small trust. The difference is that the investment target of a corporate employee stock trust is the stock of the company it serves, and employees can enjoy additional bonuses provided by the company. Joining a shareholding club, you cannot return the purchased shares unless you retire, resign or with the consent of the shareholding club.

Employee stock trust

Employee stock trust (Employee Stock Trust) refers to the entrustment of the company's stock purchased by employees to

Obtained when employees retire or leave the company

Due to the rapid development of the enterprise, the competition among the business community for skilled employees is becoming increasingly fierce. The establishment of an employee stock trust system not only increases the sharp tools for corporate competition, but also reduces external hype.

1. Who is the main shareholder? When a limited liability company has more than 50 shareholders, who will hold the shares.

Employees of the company set up an employee stock holding conference and acted as an agent of the employees. The employees who joined the employee stock holding conference signed an agency contract with the employee stock holding conference and contributed capital at the amount agreed in the contract. Staff Shareholders' Meeting

An effective way of employee shareholding that an employee shareholding trust can adopt in China's policy and legal environment can solve the main problems of employee shareholding during the process of corporate restructuring, the problems caused by excessive shareholding, and the internal transfer and The issue of inheritance, including issues such as double taxation and reserved shares, is a system design of great practical significance for the employee shareholding plan in corporate restructuring, and is the effective implementation of the Trust Law. Although there are still many issues worthy of discussion and research in the practice of employee stock trusts, its leading direction has been determined and it will make due contributions to China's deepening state-owned enterprise reform through its continuous improvement.