Equity Pledge System

The Pledge of Stock Rights discussed in this paper is the activity that in order to guarantee the performance of the debts of the civil subjects themselves or others, civil subjects make agreement with obligee to take the legal possession of its stock rights as the assurance of the obligee's right, and deliver or register the stock right documents of title to the obligee. In the case that debtor cannot fulfill its obligation when the performance period expires, the pledgee has the right to be entitled to realize its equity pledge by paying the creditor firstly. Among them, one who collateral debt to perform and pledge equity is called the pledgor, and one who own pledge equity and enjoy the right of priority is called the pledgee, and the stock transferred to the pledgee's possession or registered at the authorized government department is called the subject matter of pledged stock.By now, the basic theory of equity pledge is unclear and chaotic, reflecting on the question of whether and how the following stock should be pledged: private company equity, foreign investment enterprise investors'equity, and state-owned equity; About the concept analysis of stock pledge the, it includes the concept of subject matter of stock pledge, and the content of pledge; About the establishment of stock pledge, it includes the registration authority and publication methods; About the legal effect of stock pledge, it includes but not be limited to the effect of the scope of the assured obligee's right, the effectiveness of collateral, the pledgor and the pledge; About the realization of the pledge, etc. But given the social development and resources limitation, it is the objective condition that the equity pledge phenomenon developed with the need of flexible financing methods. The economic basis determines superstructure, and the objective social phenomenon caused inevitable existence of disputes, which need to be regulated and resolved by law. On the other hand, law has the effect of guidance, anticipation and evaluation. The security law is imperfect and unreasonable. Repair and re-standardize to such legal relationship can be helpful to comb the corresponding legal relationship and to promote market prosperity and resource circulation. Meanwhile, equity pledge as a new guarantee method, its function to promote financing and market prosperity deserves great attention.By defining the concept of pledge of stock right, this paper analyzes the characters of pledge of stock right and interprets its legal value; by comparing and studying the legislation in different areas and countries, the paper points out the basic content of pledge of stock right and legislative defects on the effective system of the pledge used in our country relying on the construction and legal validity as clues. The new vision in this paper is that after the enactment of the property law, this paper systematically summarizes the basic system of pledge, combining the reality of our country's ownership pledge to propose corresponding suggestions in order to make contribution to the basic theory of equity pledge in our country.