Legal Problems Of The Floating Charge System

In the current guarantee system in China,the range of the guarantee products is narrow;the system design is lack of flexibility.As a result,the scale of loan and financing is severely hindered.Contriving a guarantee mode that can better meet the demands of the Chinese financial market has become an issue at hand in the financial reform.Therefore,with the few studies on the theoretical foundation of floating charge system,the floating charge system in the Great Britain which is of great significance to our country,and the restrictive provisions which play a special and important role in the floating charge system,the author brings forward the significance of the floating charge system to the legislation in real right, aiming to consummate a floating charge system which fits the actual situations of China's economic development.This article is divided into four parts.In the first part,the author focuses on the recapitulative analysis of the floating charge system: introducing its concept and features;analyzing its significance to the loan and financing operation and expounding its advantages and limitations.In the second part,the design of the British floating charge system is introduced with reference to the British Case Law.The English floating charge system mainly includes the subject,the means,the object,the content and the registration,etc.,as well as the negative pledge provisions, freeze and the order system of receiving repayments when the guaranty is realized.In the third part,the author gives a theoretical analysis on the restrictive provisions of the English floating charge system.The content and function of the provisions are introduced.The restrictive provisions play an all-important role in the British floating charge system because they can ensure the fund security of the lender and can better overcome the weaknesses of floating charge.In the last part of the article,the legislation background and status of the floating charge system in China is analyzed.With reference to the advanced legislation experience of British floating charge system,and combine the floating charge system in the Law of Reality,we make a design proposal of consummate Chinese floating system.Its content should include such elements as the subject,the range,the form and the system of public notification system of registration.It should also include a series of systems such as the repeated guarantee system,right of priority system,the implementation of floating charge system and the legal responsibilities. Moreover,the construction of the compatible systems of judicial and judicial institutions and industrial and commerce administrations as well as agencies should also be improved.In brief summary,using the matured floating charge system of Britain as a reference and combining with the actual situations in the country,on the base of establish floating charge system in the Law of Reality,China should set up related thinning laws to consummate the floating charge system,make this system tend to a rational and maneuverable legislative system,so it ensure that the legal enterprises have their rights to guarantee based on their total assets.All these efforts would provide the economic development a legal safeguard.In the legislative level,these are also of great significance to consummate the Law of Reality in China.