The Legal Control For Small Loan Companies’ Risks

Small loan company roots in the farmers and small micro enterprise, give full play to theunique credit function to meet the financial needs the vulnerable groups. Small loan companyalthough wins the lawful business monetary commodity rights, but because the existingspecial regulation, it has many legal risk. How to avoid and reduce Small loan company’slegal risks, is the focal place of the paper. This paper quoted wenzhou corporation for the pilotnumber case, to analyze this kind of organization form of legal risk, and to point out its corerisk is the risk of legal status. Small loan company legal status fuzzy, have the responsibilityof financial institutions without the right to financial institutions. Accordingly, the proposal isclear Small loan company’s legal status, especially the legal status of financial institutions, soas to improve the risk prevention capacity.This paper has three parts, and conducts research along with the thought of practice-theory–practice. The first part expounds the characteristics of small loan company, and elicits wenzhou corporation for the pilot number case, and points out that the essence of manycorporation for is small loan companies "shell" and future the possibility of transformation,and small loan company owns existence many legal risks. The second part details expoundsmicrofinance company specific legal risks, including low legal status is low, the status offuzzy, capital control, internal control is lax, supervision is empty etc, and point out the corelegal risk is legal status is unknown. The third part discusses Small loan company risk legalcontrol mode and measures. Through small loan company at home and abroad for reference ofthe experience, analysis of various risk legal control measures, including perfectinglegislation, strengthen internal control, is clear about the supervision, upgrade transformation,etc.; And propose legislation gives small loan companies clear legal status, in order to solveits core risk, promote the steady and sustainable development.