On The Legal Problems Of Equity Trust In China

As a new trust varieties, equity trust recently is widespread in our applications. However, due to our legal system of establishment is not perfect, it leads to a phenomenon that many equity trust application in practice are in chaos. On one hand, a variety of new equity trust products are constantly produced, on the other hand because of the legislative lag,the relevant laws and regulations are not complete and perfect. Therefore, in order to promote the development of the share rights and the trust business, it needs a further improvement both from the aspects of policy as well as the norms.Article starts from the basic principles of trust law, first introduces the development of the origin and history of trust and equity trust, the definition of equity trust, and analyzed on the basis of the nature and characteristics of the voting trust, from a macro perspective, some basic issues of equity trusts are introduced. Then it introduces the role of the trustor, trustee and beneficiary of the tripartite system set forth their respective rights and obligations, to straighten out the equity interest in the trust’s internal legal relationship. To be close to the practice, since the equity trust is widely used in the ESOP, the management buyouts, and the investment and financing and other areas of application, the article is focusing on practical application issues of equity trust. Subsequently, the article comparatively analysis from two angles of the common law and civil law trust legislation. Finally, from the principle of legality of the purposes of the trust, equity trust registration system, trustee obligations of confidentiality and information disclosure obligations, equity trust oversight mechanism, the article demonstrates specific recommendations to improve our equity trust legislation in detail...