Research On The Floating Charge

Floating charge, deriving from the Common Law System, is a new guarantee system established during the development of market-oriented economy. Compared with a traditional mortgage, the floating charge is more flexible: it has a compound and a floating mortgage target; it has a transformative nature of right; it has a changeable mortgage amount. The floating charge opens up space for the main market players'financing activities; it meets the corporate-finance and market-investment demands in a greater level; it represents the development trend of today's guarantee area. Chinese"Property Law"introduces the movable floating charge system in Part IV (the Security Interest part): The movable floating charge system does not actually contradict with the one-proprietary-rights-on-one-independent-goods-entity principle, the numerus clausus principle and the announcement-and-public-confidence principle; they are in fact theoretically joined; this movable floating charge system with Chinese characteristics is a Chinese security system in line with international practice. However, the Chinese current movable floating charge system and its supporting system is not perfect; The relevant provisions in the current "Property Law" are too general and brief; it brings both new theoretical and new practical opportunities and challenges; and only proper solutions to these problems can realize floating charge's proper functions and real value.Based on the right of floating charge's basic theory, this paper will resolve the operating mechanism of the right of floating charge, analyze the related regulations in the existing legal system as well as their limitations, and then give some suggestions to further improve the Chinese right of floating charge, so as to provide a useful reference for floating charge to use in practice. In addition to introduction and epilogue this paper is divided into five parts. Part I will introduce the basic theory of the floating charge and the right of floating charge, including the definition, origin and development, comparison with other relevant guarantee modes, and the right of floating charge's meaning and legal characteristics. Part II will indicate the international investigation on the right of floating charge as references for Chinses movable floating charge system through analyzing the right of floating charge's realized in both typical Common Law System countries and typical Civil Law System countries. Part III will resolve right around the operating mechanism of the right of floating charge, starting from the right of floating charge's establishment and implementation, focus on it's establishment subject, set up mode, the object range of public registry, rights and obligations of the parties , crystallization, receiver system and the priority rules. Part IV will analysis the legislative status of the Chinese right of floating charge, and find out some deficiencies through legislative interpretation, based on three core articles in Chinese "Property Law". Part V will suggest the perfection of Chinese current movable floating charge system. As suggested in this paper, in order to improve Chinese movable floating charge system, the following aspects should be focused on: limiting the scope of the right of floating charge subject, expanding the scope of it's objects, improving the registration system of rights, clarifying the priority rules, and referring to and introducing receiver system and the improvement of other related measures.