What is the essence of employee stock ownership plan?

Legal analysis: As the investor, ESOP will exercise shareholder rights on behalf of employees who hold internal employee shares according to their capital contribution, and employees who hold internal employee shares will enjoy the investor's right to benefit from assets, make major decisions and select managers according to their capital contribution;

Legal basis: Article 74 of the Securities Law of People's Republic of China (PRC). At the expiration of the acquisition period, if the equity distribution of the acquired company does not meet the listing and trading conditions stipulated by the stock exchange, the stock exchange shall terminate the listing and trading of the listed company's shares according to law; The remaining shareholders who still hold the shares of the acquired company have the right to sell their shares to the acquirer under the same conditions as the tender offer, and the acquirer will buy them. After the completion of the acquisition, if the acquired company no longer meets the requirements of a joint stock limited company, it shall change its enterprise form according to law.