On The Construction And Application Of Floating Charges

The floating charge system originated from England. It has been applied in some common law countries, such as England, America, Canada, and Australia and so on. Some civil law countries, for example Japan, have adopted the similar system. The floating charge system conforms to the developing tendency of the modern security interest, so it has been playing a significant role in the area of financing depending on its flexible and efficient systematic advantages.The Civil Code of China is now in the process of legislation. If we can introduce the floating charge system into it, the legal barriers that limit financing in the traditional security manners will be broken through and the financing activities in our country will be promoted.Taking the formation and application of the floating charge system as the key, this thesis tries to discuss the theory about it on the basis of the domestic and foreign scholars' research results.The first part of this thesis makes an introduction about the origination of the floating charge system, on the basis of which, the author analyzes the main characteristics of it. The second part analyzes the mechanism of floating charge, some legal issues about its establishment, dormancy, crystallization and enforcement, and puts forward corresponding suggestions. The third part elaborates the advantages and the limitations of the floating charge system and puts forward several countermeasures. The fourth part carries on the analysis to the application of floating charge system, giving emphasis to the application of it in the area of the project financing.