The Research On Floating Charge

Floating charge comes from common law.Under this system,a company can hypothecate all its properties,which can even include the properties in future,and has the right to dispose its property before the crystallization.This will not only enhance the financing capacity of the enterprise,but also utilize the secured properties most effectively. Floating charge meets the new demand of financing capacity,which makes the floating charge be a flexible,efficient security system.Now,it is adopted by many Common-law System countries and Civil-law System countries.Along with our country's market economic development,demand for financing is experiencing an ever increasing process.Floating charge promotes the guarantee real right functions' new development,can promote gathering property's use value and exchange value's effete,benefits in the business enterprise's free development and matches the economy development's demand in nowadays society.In economic life floating charge is not lack of practice,suitable legal provision is quickly need.On March 16^th of 2007,Property Law of the People's Republic of China was issued.In it,floating charge is established,which is satisfying the request of the financing of modem industry and business,satisfying the need of enterprise's financing.This article,in keeping with this trend,introduces a new kind of the security system——floating charge.Using the study methods of historical analysis,philosophic analysis and compared analysis,this part gives a comprehensive exposition for the emergence & development,the concepts & characteristics,the advantage & disadvantage and the operation of this system,and proposes some suggestions for the transplant to our country, hoping to benefit the perfection of this system in our country.The thesis consists of five parts except for the preface and conclusion.The first part introduces the history of floating charge.To research the historical background and formation causes of floating charge's emerging,this part introduces the emerging and development of floating charge in England and the transplanting and innovation of it in other countries.After the industrial revolution,with the rapid development of British industry and commerce,enterprise's demands for capital were expanding.The old ways of security,limited the ability of enterprise's financing,so floating charge emerged.Starting from the definition of the concept——"floating charge",the second part analyzes the contents and characteristics mainly on many scholar's arguments,which help us have a good understanding of floating charge's operation and value.The freedom of guarantors' disposition and the floating of properties' value are the essential characteristics of floating charge,which can distinguish floating charge from common charge.In the third part,the author analyzes the advantages and defects of floating charge and discusses the legal values of floating charge.The guarantor's right of disposition can maximize the use efficiency of the properties,but will increase the creditor's risks.Floating charge pursues its value goal——efficiency through weighing the pros and cons.In the fourth part,the author researches into each stage of the operation of floating charge,including the creation,dormancy,crystallization and receiver.The crystallization and receiver are the special content of floating charge.It means using other countries' legislations and practices for reference.This part will give a good basement to advice mentioned in next part.The fitch part introduces the legislative process of floating charge in our country,and comments the provisions about floating charge in Property Law of the People's Republic of China.Then the author gives legislative advices about how to perfect floating charge in our country.The advices as follows:the guarantor should be the enterprise,all the properties of the enterprise can be secured,set up the receiver system,define the order of the security,and the provisions of floating charge should be independent.