The Research On The Trustee's Duty Of Prudent Investment In REITs

This thesis is divided into four parts to elaborate the legal definition,the theoretical foundation,the performance criterion and the compensatory responsibility of infringement about the trustee's duty of prudent investment in Real Estate Investment Trusts(REITs).The suggestion to establish the trustee's duty of prudent investment in REITs is put forward on the basis of the advanced experience of legislation about REITs in other countries and regions.The first part analyses the legal definition about the trustee's duty of prudent investment in REITs.First of all,define the real estate investment trust obligations of the trustee to invest the connotation of caution,that is,the trustee must be more than usually cautious or its people the skills that they possess special skills,will benefit through the issuance of securities to raise funds mainly invest in real estate and real estate related rights.Secondly,the comparison of investment in real estate investment Trust care obligations and duty of loyalty,the difference between duty of care.The second part discusses the theoretical foundation about the trustee's duty of prudent investment in REITs.Consider the transaction cost theory,the concept of fairness and efficiency and the principle of good faith of Real Estate Investment Trust's obligation to provide prudent investment in the basic theory of economics and law.The third part analyses the performance criterion about the trustee's duty of prudent investment in REITs.By comparing the Two Legal Real Estate Investment Trust legislation,summed up the investment obligations of the trustees should be careful to fulfill the following four criteria:First,the trustee investment decisions due diligence before.China could be considered by the Trustee Board of Directors is responsible for the establishment of due diligence committee,including funds the custody of agencies,in charge of the project's lawyers,accountants,etc.,as well as property assessment,due diligence mainly related to real estate or the rights of the creditor's rights and liabilities on the accompanying relations;the proposed development,the construction of real estate projects to conduct a feasibility analysis;maintenance and operating expenses required for the property.Second,the trustee can not be entrusted to the management of all third parties.China should allow the trustee to the effective management of real estate investment trusts for the purpose of one or more of its investment and management of the exercise of the rights entrusted to others.Third,the trustee shall be distributed to real estate investment trust funds,the investment scope.China should provide for the trustees to real estate investment trusts scattered objects and the ratio of investment to spread the investment risk.Fourth,the trustees have had to limit investment in real estate investment trust funds.Should be prohibited in China real estate investment trust engaged in securities credit transactions,as well as investment in other real estate investment trusts behavior.The last part studies the compensatory responsibility of infringement about the trustee's duty of prudent investment in REITs.First of all,the obligations of trustees in violation of prudent investment of the nature of the liability should not be responsible for breach of duty or breach of contract and tort liability,but should belong to infringement liability.Second,the trustee obligations in violation of prudent investment principle of attribution of liability to take the fault of the general principles of duty,but should be entrusted to the trustees of the Trust affairs agent deal with misconduct arising from the application of the liability of the principle of no-fault liability.Once again,found fault on the trustees,the trustees have to be clearly higher than the usual care or the people skills that they possess special skills management or disposition of trust property,if its not the extent of this attention,it finds that the fault of its existence.Finally,cautious about the investment obligations of the trustee in breach of the scope and exemptions of compensation,the compensation should be the trustee for the trust property to determine the scope of the direct losses and indirect losses,and obligations of trustees in violation of prudent investment when not at fault,the beneficiary of trustee in violation of prudent investment obligations prior express consent,or shall be ratified later identified as the trustee of such exemptions.