Study On The Legal Protection Of Private Investors In Project Financing In Railway Industry

China’s ministry of railways in China promulgated the policy documents torealize the better guidance and the use of private capital into the railway industry in2012.But China’s railway industry project financing legal regulatory system is notperfect, and has the existing legal system lag and the problems of the legal regulationof the blank, which caused private investors’ interests not to get better legal protection.The author analyzed the topics of Railway industry project financing which wasparticipated by the folk investors, through the analysis of the folk investors Legalprotection status. And then the author put forward the existing problems and perfectcountermeasures and Suggestions.This paper discusses the following aspects:The first part, Case studies and questions elicited. The author discussed the caseof project financing of the railway industry with the China’s related policies andregulations. For example: the Qu Chang Railway Project, there were two legal reasonscaused the Changshan Cement Co., eventually to quit the project. The first reason isthe China’s related policies and regulations of railway industry has established"indistinction between the" railway industry system, which caused the railway projectfinancing in railway enterprises and private investors in existence of inequality; thesecond reason, railway industry project financing was always through the related, lowlegal status, lacking of stability and not conducive to the implementation of the policyguidelines, which caused own rights and interests of private investors not to protect.The second part, Protection of the interests of private investors in the projectfinancing of the railway industry overview. The author discussed the theory of civilprotection of investors’ interests on the project financing of the railway industry. Thefirst, In order to understand, the author defined the related concepts of projectfinancing and private investors. Second, The authors analyzed the project financingfolk investors rights with the method of law, through two aspects which were theprivate equity investors to participate in decision-making proportional distribution in railway projects in the company and the private investors in shareholders’ rights ofrailway projects in the company.The third part, Status and Problems of legal protection of the interests of privateinvestors in the project financing of the railway industry. In order to grasping theproblem the reason, the author analyzed the railway industry project financing ofprivate investors rights protection present situation. Specific performance status in theproject financing, financing the parties were legal status of inequality, and in theproject financing, private investors rights were not reasonable legal restrictions. Thereare two reasons: the first is the railway industry laws and regulations standard systemlag; the second is the problem of the railway industry project financing policyguidelines. In the above analysis, the author puts forward correspondingcountermeasures and suggestions.The fourth part, experience of the extraterritorial railway industry project financecivil protection of the interests of investors and revelation. By the relevant experienceof legal regulation, the author discussed the project financing of the railway industryin Germany and China Taiwan region, then come to derive inspiration: the first,legislative bodies make legal security systems; the second, government improves theregulatory regime and financial support.The fifth part, countermeasures and suggestions to improve the legal protectionof the interests of private investors in the project financing of the railway industry.The author discussed mainly from the following aspects: the first, government madethe principle of moderate intervention clear the country in the railway industry; thesecond, government develops the railway industry project financing normative lawsand regulations; the third, the legislature modifies the provisions of the interests ofprivate investors in the project financing of the railway industry unreasonablerestrictions;the fourth, government establishes the Railway Industry Association ofprivate investors.