Beijing court enhances efforts toward improving business environment

A Beijing court has paid greater efforts to better solve disputes involving equity incentives over the past few years so as to help build a sound business environment in the capital.

Data released by the Beijing No 1 Intermediate People's Court on Friday showed that it concluded 334 civil cases concerning equity incentives from January 2019 to March 2023. The number in 2020 increased by 135 percent compared with that in 2019.

"More than 90 percent of the total cases happened in science and technology enterprises, and the involved equity incentives were mainly given to executives, or those for core departments in the companies," said Li Jun, chief judge of the court's No 6 Civil Adjudication Tribunal.

He noted that the average amount of money involved in common labor disputes are about 300,000 yuan ($43,421), "but the figure in the equity incentive cases could reach 4 million yuan".

To keep a better relationship between employers and employees as well as to promote the healthy development of the economy, "we've upheld a principle of giving equal protection to litigants," he said.

In addition, the court also invited experts specializing in labor laws to exchange ideas on how to better solve equity incentive disputes with more research and seminars on the issue, he added.

"Enterprises should better explain what situations employees can be given equities and how to use and withdraw the equities by making clearer rules, not only to prevent unnecessary disputes, but also to encourage those willing to help the employers to develop to stay in the companies," he suggested.

Furthermore, employees, especially those working for micro and small science and technology enterprises, should also enhance their awareness to prevent risks, he said, calling for them to reach agreements on equities in a written form.