Research On The Legal System Of The Trust Companies

Trust company is chartered to set up on the basis of trust law, company law and other laws; and it is a corporate financial organization which operates trust business and gets reward as trustee. It has the core characteristics as profit-making, licensing operation and the identity of "trustee". In our country, trust company is specifically a trustee business and it is a non-bank financial institutions. It has similarities and differences with the trust companies, trust investment companies and fund. Trust company is a special trustee that sets up on the basis of the advantages of trust policy and integrates the foreign and domestic policies. It complies with the commercial and financial requirements of the development of the special trustee agencies, and its flexibility also asks for a higher request for the legal system. The legal system for trust companies in China is still lagging behind the development, which has been a key issue for the legislators, practical and academic communities.There are three perspectives of the legal system of the trust companies. First, the legal system of market access of trust companies, including the registered capital, shareholders qualifications, business scope, application procedures, and the market access approval for some special trust business; The second is the legal system of business scope for a trust companies, including the duties of trust companies (such as the management of trust property and to deal with trust affairs), the rights of trust companies (such as the right to claim remuneration cost, reimbursement of cost and redemption of debt, etc.), the obligations of trust companies (such as the duty of loyalty, duty of care, personal management obligations, namely the management of obligations, obligations of fair treatment, information disclosure obligations, the obligation of confidentiality, etc.); The third is the legal system of market withdrawal of trust companies, including the dissolution, withdrawal, bankruptcy, suspension of business, the implementation of take-over, ordered to rectify business, branch out of the market, and other rules of the law.The trust system in China is still in the development, and the laws for the trust companies remain to be improved. The legislature should work out as soon as possible the "Trust Law", giving a clear answer to the business model and regulatory of the trust companies. Regulatory authorities should also change the regulating method under the mixed operation background, accelerate the building of the legal system, and establish a balanced system of the right between the market and laws-including the trust companies'responsibilities, rights, obligations and responsibilities.