Based on your question, Jingbang Consulting would like to give the following answer:

There is no legal obstacle to indirect shareholding for equity incentives through an employee shareholding platform, and incentives in the form of restricted shares are feasible. Employee stock ownership plan as an incentive for equity incentives can be voluntarily gifted by major shareholders or non-publicly issued shares as a source of stock for the incentive plan, and the incentive plan management organization can be the company's internal institutions, can also be entrusted to external institutions, management.

1, the concept

For us entrepreneurs, do not need to know such a professional definition, here note that the two main elements: outside the parent company to establish a business or a company, this business or company holds a part of the parent company's shareholding; a major purpose: the purpose of employee incentives.

Maybe some partners will ask: is all the employees need to put her in the employee stock ownership platform? No. Only need to put your company has value, contribution, resources, very important employees put in, you can call them directly as the patriarch.

2, constitute the conditions of the employee shareholding platform

(1) employees can not directly hold the parent company's equity, it must be indirectly held

(2) only the regular employees can participate in the distribution of equity, interns, part-time, non-company insiders can not be involved

(3) for employee incentives for the share (3)The shares used for employee incentives cannot be inherited, and the company needs to set up restrictions on their trading

(4)The incentivized employees cannot participate in the decision-making of the parent company (at most they can elect employee representatives to participate)

(5)The employees who hold the shares participate in the dividends of the parent company through the secondary distribution of profits.

One profit distribution, is when the parent company generated profits, in the agreement of a fixed time (usually the end of each year) by the employee shareholding platform for profit distribution; secondary profit distribution, is in the employee shareholding platform company after the distribution of the parent company's profits, and then in accordance with the shares of the shares of the share share of incentivized employees for dividends.

The above is the answer given by Jingbang Consulting according to your question, hope it can help you. Jingbang Consulting, 17 years focus on stock reform a thing.