A Study On The Legal System Of Preference Shares In Social Security Funds

The social security system, which copies with the crises of payment, is significant to macro-economy and social development. It is the key to completing the social security system.Enhancing the value of the social security fund’s value function, not only by financial subsidies, state-owned shares’ conversion and other ways to enrich the social security fund, but also draw into a variety of investment preferred shares and other financial produces, which is beneficial to improve the investment structure.In this paper, I start with some relevant concepts of preferred shares with brief discussion of the concept, nature, features, types of preferred shares and aspects of rights. At the same time, look to the legal structure of the social security fund investment in preferred shares with “National Social Security Fund Management Interim Measures ”and protecting the rights of the shareholders in preferred shares and the social security fund investors with“ Preferred Stock Pilot Management Approach”.Based on referring to the social security system of US, preferred stock system and so on, which overseas advanced investment management mode, concentrating on preferred equity and shareholder rights.After that, increasing the value of the study of the social security fund of legal system of preferred shares, which combined improving risk monitoring mechanism and paying attention to investment in supporting the construction of legal environment.These are all for later discussion.The author uses literature, comparative study and other methods to select and analyze the development model of American social security fund in the common law system and preferred stock system, then describes application of preferred stock in enrich the social security fund. Personally speaking, improving legal system of preferred stock is benefit to put social security fund in the field of preferred stock, which shall increase the value of the social security fund.Last but not the least, basing on preferred equity and shareholder rights, and combining with the principles and requirements of the social security fund operations,I have proposed the idea that we should increase the value of the social security fund in our country’s preference system design, to promote the stable development of the preserve and increase the value of the social security fund.