On The Right To Return On Equity Pledge

The right to return on equity is a concept derived from the equity, and it is a relatively new independent concept. In theory, equity can be divided into the right of self-benefit and common usufruct, including the right to self-benefit which is part of the economic value of power, and mainly the dividend distribution to equity shareholders of rights, and that the rights of shareholders to obtain revenue. And gain the right to return on equity rights is the Company’s shareholders by investing short. The return on equity rights in equity since usufruct denotation and connotation can be basically the same.Pledge of rights system has a long history, originated in Roman times. With the innovation of the type of property rights, the subject of pledge of rights is continuously enriched. With the emergence of the company’s produce, as an economic value of transferable rights, equity has become a pledge of rights system, and in the twentieth century has been recognized by the multi-national legislation. Our equity pledge system at the earliest guarantees the Act provides for "Property Law" continuation. In practice, however, the share pledge was from the legal, policy, and the shareholders of the company out of concerns about the loss of shareholder status. Resulting equity can not give full play to the value of the guarantee. As we all know, small and medium enterprises are currently facing severe financing difficulties. Enterprises often through banking channels financing, and bank claims require the borrower or a third party to provide reliable guarantees, but many small and medium enterprises lack of fixed assets, and they have to produce a relatively stable income equity exercise the pledge right out of the pledge. They worry about the loss of the status of the concerns of shareholders. So they may not be willing to equity pledge, which affects not only the equity value of the play, but also conducive to enterprises financing.The authors believe that, starting from the actual credit status of the majority of small and medium enterprises, the right to the proceeds of the equity owned independently from the equity out of the establishment of equity gains the right to pledge not only to help enterprises to achieve financing to resolve operating difficulties, but also give full play to the equity value.The paper is divided into four parts, the first part is an introduction, elaborated on the background and significance of the topics, list of a typical case met the legal practice as a starter, analysis of the share pledge by several limitations, and propose options the gains the right to pledge the equity pledge can be solved by the idea of bondage.The second part to equity gains the right to pledge the basic theory, the characteristics of the system from the pledge of rights, as the characteristics of the right to pledge the subject of rights, the right to pledge the main function of the system analysis of the pledge of rights system, and then through the return on equity rights attributes and characteristics of the analysis demonstrate the return on equity rights transferable and meet the requirements of the pledge of rights is the subject of rights as collateral for a quality.The third part is divided into equity income right out qualitative feasibility and necessity of analysis from the specification level, the theoretical level and a practical level analysis of the right to return on equity qualitative feasibility, and then discusses the equity gains the right to pledge the equity pledge system defects remedial value, as well as the right to return on equity pledge independent value.The fourth part is the return on equity established the right to pledge specific issues, draw on the equity pledge specific analysis of the establishment of the rules of equity gains the right to pledge to meet the public notice requirements of the property rights, the effectiveness of the range of equity gains the right to pledge, return on equity, the right to pledge the rights and obligations of the pledge and the pledge qualitative realization of the right of return on equity rights.The purpose of this paper is that discusses equity gains the right to be independent in equity separate the qualitative and proposed legislative proposal in China can modify the "Property Law" or the development of single-line legal regulations equity gains the right to incorporate property rights of that can be pledged to improve the country’s Property Guarantee System.