The Research On Legal Nature Of Dormant Investment

Every market entity is focusing on pursuing economic interest and making rational choices under full consideration and utilization of market condition that the occurrence and development of dormant investment is without exception. It is a particular phenomenon whose shareholders’status is uncertain. The number of dormant investment dispute is increasing day by day due to the complex dormant investment related legal relationship and there being no direct or clear regulation for dormant investment in China’s present law. For there are some similar legal principles both equity investment trust and dormant invest are sharing, therefore, using the basic principle of trust law, this thesis starts from the theory of equity investment trust to study equity investment trust system systematically, deal with dormant investment issues and propose perfecting advises for the registration and notification system and contract terms of equity investment trust in order to solve problems caused by dormant investment and to realize the benefits of investment.This thesis is divided into3chapters:introduction, main body and conclusion. Chapter1comprehensively introduces the actual investor’s connotation and denotation describes the legal nature of dormant investment and raises the theory of equity of investment trust from the aspects of the origin, demarcation, related legal relation and current legislation status of dormant investment. Chapter2proofs the similar legal principle between dormant investment and equity investment trust through quoting equity investment trust. First of all, Chapter2summarizes trust and equity trust, raises progressively the equity investment trust, then discovers and proofs the formal and essential similarities between equity investment trust and dormant trust. At the same time, chapter2further analyzes the advantages of trust relation system and concludes that equity investment trust system can well coordinate the legal problems of dormant investment. In chapter3, this thesis proposes measurements to regulate and perfect dormant investment behavior according to the conclusions made by the above chapters while elaborating the imperfect current situation of China’s regulating system for dormant investment. Chapter3also offers proposals to perfect the registration and notification system and contract terms of equity investment trust and dormant investment.