Insiders: The Fuan Case Will Be A Specimen Of Domestic Equity Incentives

Recently, there has been some new progress in the case of P, Shenzhen's Limited by Share Ltd and 26 original shareholder disputes.

The Shenzhen intermediate people's court ruled that the people's Court of Nanshan District has jurisdiction over Fuan's lawsuit involving an amount of about 80 million yuan.

The ruling is final, and the case is characterized as a contract dispute.

Insiders said that the fuanna case will become a specimen of domestic equity incentive.

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< p > reviewing this event, fuanna listed more than two thousand employees before the reform, and 109 of them participated in the "Employee Stock Ownership Plan" and got the "original stock".

Throwing out such a delicious "equity cake", in addition to following the practice of modern corporate governance to stabilize the long-term development of the company, I am afraid it is also related to the current situation. At that time, the senior talents in the textile industry were scarce and robbed fiercely. When the industry was poaching, there were newspapers everywhere.

In any case, as a private enterprise, being able to be generous to employees can explain that fuanna's belief in treasuring employees and genuinely developing enterprises.

But not until the company went public, 26 of them quit and job hopping.

In line with the principle of matching obligations with power and responsibility and income, these employees who left the company before the listing should have no right to enjoy the fruits of victory after the listing.

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< p > 2007, PE should normally be about a dozen times in the capital market. However, from the fact of listing, fuanna did not introduce any PE, and some of the shares were left to her employees. As a private enterprise, fuanna's behavior is very admirable.

At the same time, in order to avoid risks, the company signed a commitment letter with the 109 employees, hoping that these employees would not leave the company within three years.

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< p > earlier, some media also believed that according to the letter of commitment, the whole event should be defined as "labor dispute", and the arbitration procedure for labor disputes should be followed.

In fact, although the labor contract law does have provisions on liquidated damages, these Provisions apply only to civil contracts signed between units and shareholders.

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< p > but after being identified as a contract dispute, the concern is whether the letter of commitment provided to the court is valid.

"There are two core issues in this case, one is jurisdiction disputes, the other is the validity of the letter of commitment.

Next we will see whether the defendant has asked for judicial identification of the letter of commitment.

Zhang Wen, a partner in Beijing's law firm, said.

Prior to that, Fu Anna told the media that his litigation evidence "letter of commitment" was signed personally by the parties themselves, which is objective and real.

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< p > no matter what the result is, the case of fuanna will become a specimen of domestic equity incentive and trigger the capital market to torture professional managers' professional ethics.

After all, the internal fighting that can be brought about by the cleavage soil is a great risk to the company's image and reputation.

At present, a large number of listed companies and listed companies are implementing the equity incentive plan, and the typical case of fuanna incident allows us to rethink, examine and formulate reasonable equity incentive policies.

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