A Study On The Legal Problems Of The Benefit Right Of Commercial Trust

With the rapid development of the trust sector, the total assets under management of trust companies has ranked second among all the financial sectors, which is secondary to that of the banks. Due to rapid development of the trust industry, the legal system of trust law has made great progress. Since the promulgation of the trust law, research around the commercial trust has made great progress. However, traditional research on commercial trust usually focuses on the perspective of contract law or property law. Neither can provide a more appropriate analytical framework and explanation for the property rights of commercial trust. In recent years, the theory of organizations has increasingly been applied into the research on commercial trust, which provides a more complete framework for the analysis of the internal structure of the rights for the commercial trust. The theory is important to both legislation and judicial systems of commercial trust. The paper is dedicated to studying the beneficial rights of commercial trust, which is placed at the core of commercial trust. Based on the certain cases, the paper points out three problems which includes the unclear definition of the nature of the beneficial rights of commercial trust, lack of the transfer rules of the beneficial rights of commercial trust and lack of exercising rights of commercial trust. The paper conducts a deep analysis on the certain cases in the practice and aims at strengthening the protection of the beneficiaries. And then research around the above three problems will be conducted further under the perspective of organizational law. Also, the paper conducts a comparative study, referring to the Japanese legislation. After that, the paper proposes for legislation of the trust law based on the above statement. The paper has two main clues. One is to prove that the commercial trust has certain characteristics of commercial organizations. In addition, the paper illustrates that the theory of organizational law contributes a lot to the research on commercial trust. The other is to propose for legislation of the trust law based on the statement about the beneficiary rights of commercial trust under the theory of organizational law.The paper consists of five parts, which is listed as follows:The introduction offers a brief statement to the background of the topic. And then through literature review, the paper gives a brief summary on the ideas about the topic and clarifies the main ideas of the current research on the topic. Based on the above illustration, the paper proposes methodology and analytical framework for the topic, which lays a solid foundation for the following statement.Chapter I clarifies the differences between commercial trust and business trust. Then based on the certain cases, the paper points out three problems which includes the unclear definition of the nature of the beneficial rights of commercial trust, lack of the transfer rules of the beneficial rights of commercial trust and lack of exercising rights of commercial trust. The definition of the beneficial rights of commercial trust has been a fundamental topic among the field of commercial trust. Also the clear definition of that lays a good foundation for the topics of both lack of the transfer rules of the beneficial rights of commercial trust and lack of exercising rights of commercial trust. On the basis of that, the paper further explore the causes of the above three problems.Chapter II is intended to justify the legal basis for applying the theory of organizational law to the analysis of commercial trust. The paper demonstrates the organizational characteristics of commercial trust from both theory and practice. In theory, the paper combines the function of asset partitioning of commercial trust with the internal governance structure of commercial trust to further the illustration. In practice, the paper take the asset management scheme for example to demonstrate that the organizational characteristics of commercial trust has been acknowledged in practice. Then, the paper offers a new definition of nature of the beneficiary rights of commercial trusts. Based on the existing legislations and theories, the paper focuses on the residual claim rights and control rights of the beneficiary rights of commercial trusts. It lays a solid foundation for the following illustrations.Chapter III aims to illustrate the construction of the rules relevant to transferring and exercising of the beneficiary rights of commercial trusts under the perspective of organizational law. Firstly, based on the existing rules and practices that is relevant to transferring of the beneficiary rights of commercial trusts, the paper proposes to establish new substantive and procedural rules that is relevant to transferring of the beneficiary rights of commercial trusts, conducting comparative study on Japanese law. Secondly, based on the existing rules and practices that is relevant to exercising of the beneficiary rights of commercial trusts, the paper proposes to establish new rules that is relevant to exercising of the beneficiary rights of commercial trusts, conducting comparative study on Japanese law.In the end, as to the three issues which have been discussed, the paper proposes for legislation to make contributions to the development of the trust law systems. What’s more, the paper switches from the micro level to the macro level to emphasize and discusses the significance for the study on commercial trust under the perspective of organizational law.