On The Equity Pledge

Pledge of stock rights arises with the development of commodity economy andcorporation law system. Its essence is to develop the capital market and monetarymarket by means of promoting the extension of the short-term credence. Because it isof comprehensiveness, involved in different subjects of law such as Company Law,Securities Law and Guaranty Law of China, the prescriptions on the pledge of stockrights in the different branches of law are in mutual conflict. In domestic academicfield no deeper researches have been conducted in the aspects of the above-mentionedbranches of law.Based on the current situation, the thesis presents a systematic analysis on thelegal system of the pledge of stock rights in the view of the nature of the stock rightsin the pledge and its basic theory of pledge. On the basis of coordinating the differentbranches of law, the thesis tries to establish a systematic statute about the pledge ofstock rights. And the dissertation also attaches more importance to the measurementof the interests between different parties. On this basis, it tries to build a fair and justsystem about the pledge of stock rights.In this dissertation, many approaches like comparative jurisprudence and positiveeconomic analysis get used. In accordance with the current situation of China'slegislation and the theoretical study, a rational and equitable discussion is givenaccording to the logic and value.To be detailed, there are five chapters in this dissertation.Chapter â…  is dedicated to the analysis on the essence of the stock right in thepledge. In this part, many viewpoints about the stock right are unfolded on the basisof its definition and a conclusion is reached that the stock right is the associator`sright. In addition the subject matter about the pledge of the stock rights are interpretedand concluded that the stock right is pledged in whole in the pledge of the stockrights.Chapter â…¡ is centered on the establishment of the pledge of the stock rights oflisted companies. Firstly, some misunderstandings are clarified in the academic circlesin comparison of the legislation in different countries;secondly, this chapter pays asecond thought to the legislation of China following the essence of the stock right inthe pledge;finally, the chapter suggests that the establishment of the pledge of thestock rights of listed companies needs not only the contract about the pledge and theregister in Securities Registration and Clearing Institutions, but also the registration inshareholders' enrollment.Chapter III focuses on the establishment of the pledge of the stock rights ofunlisted companies. This chapter is separated into two parts, the first about theestablishment of the pledge of the stock rights of unlisted companies limited by shares,and the second about the establishment of the pledge of the stock rights of companieswith limited liabilities. The first part holds that it is not enough to prescribe that theregistration in shareholders' enrollment is in need of the establishment of the pledgeof the stock rights of unlisted companies limited by shares. There should beprescriptions about the establishment of the pledge of the stock rights of unlistedcompanies limited by shares in Company Registration Section. The second partproposes that the same conditions should be adopted in the establishment of thepledge of the stock rights of companies with limited liabilities. And according to theessence of the stock rights in the pledge, the establishment of the pledge of the stockrights of companies with limited liabilities should be restricted when the shareholdercreates the pledge to the other people who are not shareholders.Chapter IV is about the effect of the pledge of stock rights. Based on the essenceof the stock rights in the pledge, the chapter renewedly distributes the rights ofshareholders between pledgees and pledgers. It should be noted that this distributionis built upon the analysis of internal relations about the rights of shareholders.Chapter V comes to a conclusion. And it sums up the above-analyzed overviewof the dissertation and shed my own thought about the rebuilding of the system aboutthe pledge of stock rights.What this dissertation wants is to reconstruct a system of the pledge of stockrights. I don't think I'm so rich in this field that I can not make sure whether or notmy analysis is quite reasonable. But I still hope that what has been discussed abovecan be useful to the theory and practice of the pledge of stock rights.