On January 22, 2018, our lawyer Song Haijia was invited by the Chinese Law Society to give a lecture on “Rethinking Equity Incentives” and “Prevention and Control of Shareholder Disputes”.

At the lecture, Lawyer Song pointed out that the core issue of the equity incentive plan is to prevent and control shareholder disputes. More than 30 lawsuits surrounding the real Kung Fu company pointed out that the focus of solving the disputes of shareholders lies in the competition for control of the company.

Explained through the real scenarios of the various types of disputes that may occur during the company's control competition. The core of preventing shareholder disputes is to establish effective rules of procedure and exit mechanisms to improve corporate governance structure. The equity incentive mechanism such as the choice of equity incentive model, the choice of incentive objects, and the dynamic adjustment in the incentive process were carefully analysed and explained.