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This employee shareholding system is referred to within Huawei as the "silver handcuff". It is a system that is different from the more common stock option arrangement, which is often termed the "golden handcuff". The idea underlying this scheme is that Ren Zhengfei wants to share both responsibilities and benefits with his colleagues.
As a result, better policies such as encouraging a shareholding system, third-party monitoring, and specific legislation with strict enforcement are needed to create the appropriate institutional environment, good public private relationships, and a tight collaborative network among governments, capitalists, enterprises, consumers, NGOs, and other stakeholders.
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Ruhrpumpen has acquired a majority shareholding in Tigerflow Systems LLC, a Dallas, Texas-based manufacturer of packaged pumping systems for domestic water, fire, HVAC, industrial, heat transfer, municipal, landscape irrigation and custom controls.
Many social activists argue that selling a holding should be a last resort, preferring to use their shareholdings within the system to effect change.
But even so, Scott Morton says, a dismantling of this type of shareholding through the legal system isn't likely to happen.
Another is that in Japan's keiretsu system of cross-shareholdings, many shareholders are corporate buddies facing similar dilemmas.
Next came the country's spectacular macroeconomic growth, fostered to some degree by the system of cross-shareholdings.
The system of cross-shareholdings began to work against them.Yet for some four years an eerie calm prevailed.
Japan's cosy old system of cross-shareholdings and stakes held by friendly local banks is breaking down.
Mr. Murakami's bid for Shoei exposed the impediments that Japan's system of cross-shareholding among banks and corporations pose for investors.
It would like to phase out the old system of cross-shareholdings between banks and corporate clients, which often serve to protect underperforming managers.
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