On January 25, 2018, our lawyer Song Haijia was invited by Huachuang Interactive Education Research Institute to give a lecture on “Rethinking Equity Incentives – Equity Incentives for Entrepreneurial Enterprises”.

At the lecture, Lawyer Song pointed out that the core issue of the equity incentive plan is to prevent and control shareholder disputes. Focusing on more than 30 lawsuits committed by the real Kungfu company, it is pointed out that the focus of the resolution of shareholder disputes lies in the competition for control of the company, and the legal cases can be used to explain various types of disputes that may occur during the battle for control of the company. At the same time, the core of preventing shareholder disputes is to establish 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.