Equity Trust Legal Issues And Practices

Along with the push to Modem Corporation System and development of capital market, share rights is increasingly becoming one of the necessary society treasures, and share rights trust will have a bright future. However, because of the absence of special system for share rights trust in our country, many problems have appeared in practice.In the first part, I analyze the creation of share rights trust. By analyzing the development of trusts in English, in America and in Japan, I conclude that trust fund now mainly consist of share rights and securities, and the purpose of trust has shifted from keeping the value of trust fund to increment of value. As the result of this trend, share rights trust increasingly prevails.Importing the trust system, our country should integrate the new system into our actual regulations, basing on Contract Law and Trust Law. Share rights trust has its particularity, but it also creates relationship by way of a contract. On this base, this article analyzes how the share rights trust contract goes into effect, how the share rights trust goes into effect, and the relationship between share rights trust contract and share rights trust.This article also analyzes the constitution of share rights trust. As the object of share rights trust, share rights comprises property and right of administration, which accords with the trust rule that the right and the benefit should separate. Settlor (beneficiary) keeps parts of the property, and transfers the right of administration to trustee. This article emphasizes the beneficiary's knowing right, transfer of the getting benefit right and exercising the revoking right. It also analyzes the trustee's obligations that a trustee should take reasonable care of the trust assets and act in best interests of the beneficiary, and so on.Through above analysis, it settles some legal problems arising during the course of application of share rights trust. In part six, I give a deep research into how to apply the trust system into employee share. In our country, employee share (including MBO, all employeeshare and admixture) is mainly applied into the restructuring of the corporation. Share rights trust must be play an important role in this reformation.In present legal systems, share rights trust faced many challenges. This article gets a conclusion that our country should establish a perfect share rights trust system and integrate the new system into our actual regulations.