Research On Legal Issues Concerning Trust Contract In A Conducting Financial Transactions

Trust in conducting financial transactions is a new way of managing capital in the capital market in our country. Many problems and contradictions, whose roots can be traced to trust contract in conducting financial transactions, have emerged in practice because of the current unhealthy legal environment. This paper, therefore, deals with trust contract in conducting financial transactions by employing theories of law and system economics, approaching it through comparative analysis, historical analysis, and positive analysis. It makes an analysis of some related legal issues with regard to trust contract in conducting financial transactions in an attempt to help to complete the legislation of trust in conducting financial transactions in our country.The paper consists of three chapters. Chapter One investigates various arguments over the legal nature of trust contract in conducting financial transactions respectively on the basis of the analysis of its conceptual connotations. Starting from analyzing the status quo of the financial development in our country, Chapter Two probes into the criteria of the judicial validity of trust contract in investing securities and futures. It also makes a concrete analysis of the validity of trust contract in conducting financial transactions under different circumstances. Simultaneously, it expounds the minimum clause which is considered to be one of the main reasons that trigger off the disputes over trust contract in conducting financial transactions. Chapter Three, based on the discussion of the previous two chapters, is mainly involved in the law-making of trust contract in conducting financial transactions from three perspectives. At first, it argues that conducting financial transactions should be brought into the trust system in legislature when conditions are ripe, thus enabling it to develop regularly. Then, it argues that supervision over trust in conducting financial transactions should be strengthened from five aspects such as further improving the management of stock holders and companies that have come into the market, and providing more information, etc. Finally, it deals with relief in disputes over trust contract in conducting financial transactions. The author, using foreign, especially American, experience in the modern securities arbitration system for reference, and considering the situation in our country, suggests that an arbitration system in handling disputes over trust contract in conducting financial transactions should be established in our country.