Research On Legal System Of China’s Land Cooperative

Land Cooperative, with the right to land contractual management as main investment form, is a mutual aid economic organization founded by farmers through voluntary association and democratic management. In the Land Cooperative, the land is central planning and unified management. The Land Cooperative combine the basic operating system with the rural economic development in rural areas at this stage. The emergence and development of Land Cooperative is the result of innovation on rural land contracting right model.As a new type of economic subject, Land Cooperative breaks the bottleneck of land issues, achieves the optimal combination of land resources, and plays an important part in the development of economic and social in rural areas.Land Cooperative will not only help reduce the land market transaction costs of farmers, promoting rural economies of scale, but also to provide farmers a platform to improve quality, and foster a spirit of cooperation, with important economic and social functions. The article research Land Cooperative of Pei County in Jiangsu Province as case study, in order to analyze and improve the legal system of the Land Cooperative in the present reality of rural areas.The article first research with the transaction cost theory of new institutional economics, theory of differentiation and integration of sociology as basic point, proceeding from a multidisciplinary perspective, comprehensive described the theoretical basis of Land Cooperative’s Production and development; and clearly defined the legal meaning and legal attributes of Land Cooperative combining its legal characteristics.Survey results show that the development of Land Cooperative is healthy and orderly in general, while, as an innovative mechanism, there are still immature in Land Cooperative on system level, and encountered some obstacles in the real economy. The article analyzed the core legal system of Land Cooperative in Pei County basing on the results of findings, explored the reference to the development of China’s Land Cooperative, and analyzed in depth to the difficulties in development of Land Cooperative.The content of the legal system of Land Cooperative are very broad, in this paper, we analyzed and improved core legal system of Land Cooperative, just as the internal governance system, the land property rights system, the distribution system, and the government support system. This paper presents the following views:In the first place, to improve the governance structure of Land Cooperative, we must first improve the decision-making mechanism to regulate the distribution pattern of decision-making power between the various interests. Second, to establish and improve the incentive and restraint mechanisms, so that members of Land Cooperative are able to get reasonable return. Finally, to effectively play the important role of the Members (representatives of) General Assembly, to establish comprehensive monitoring mechanism.Secondly, to improve the property rights system of Land Cooperative, we must first clear the joint property rights, to specific the public accumulation benefits’ownership. Second, to rational allocate the residual claim and residual control, promoting the Land Cooperative for low-cost, efficient allocation of resources. Again, option settings should left reasonable space for investors and producers, to fully mobilize the enthusiasm of both sides.Afterwards, to improve the distribution system of Land Cooperative should take interests of various stakeholders into account from the overall situation. It is necessary to ensure the participation of the main interests have been reasonable feedback, while not change the essential characteristics of the Land Cooperative. Amount to reasonable regulation by the return of patronage relationships with allocated according to shares, to establish a sound financial and accounting system, and build incentives for quality; to improve the principle of limited return on capital in attracting investment and must ensure that members of the democratic control the capital of Land Cooperatives.Last but not least, to improve the government support law system of Land Cooperative, the government should grasp the role in development of Land Cooperative. Government should support and guide the development of Land Cooperative, and should not be set up or leader. Government should strengthen macro-control, and optimize the policy and legal environment as well.