A Study On Trustee's Power(Right) & Duty(Liability) System In Business

"Trust"is classified into three categories according to the third article of The Trust Law of the People's Republic of China, which are civil trust, business trust and charitable trust. The trust industry should be named as business trust as they are profit oriented. The characteristics of business trust include: profitability, legality of the subjects, interest exchangeability and monetary. The business trustees are chartered financial institutions doing business as trustee for the purpose of earning profit.The system of"The Power (Right) & Duty (Liability)"of business trustee includes the trustee's power, right, duty and liability. The power of a trustee refers to the legal power of a trustee to manage trust property and handle related matters during the trust period, it is a power based on private law; the right of a trustee refers to the legal right of a trustee to gain specified interest during the trust period; the duty of a trustee is the constraint for the trustee to take or not take certain activities to meet specific purpose or to protect the interest of beneficiaries; the liability of a trustee is the unfavorable result afforded by the trustee because the trustee breaches its duties stipulated by laws or contracts, or act improperly. Based on the analysis of the trustee's power, right, duty and liability, the author puts forward the model of Business.Trustee's Power(Right) & Duty(Liability) System, which is a study pattern on the power, right, duty and liability of business trustee (including the inter-relations of power, right, duty and liability). The model is a three-level structure around the business trustee: the first level is the business trustee itself, which can be called"trustee level", it underlines the trustee's role as a"channel"; the second level is consisted of business trustee, trust property and trust purpose, the trust purpose and trust property are the key factors to form a trust; on the basis of the second level, the third level integrated with Meaning Autonomous Principle and regulation of law, and the legal relations are formed around the business trustee, which takes the form of trust contract and trust industry law. The third level can be called"trust relation level".The author not only analyses the structure of the business trustee's power (right) & duty (liability) from the point of view of jurisprudence, but also studies the model according to"Economic Analysis of the Law", and"reputation model"and dynamic information game are introduced into the study as well. Finally, the author discusses the four applications of the model: the formulation of trust industry law, the draft of trust contract, the innovation of trust product and the control of trust risk.