Research On The Pledge Of Non-listed Shares Of The Company

In recent years, with the rapid economic development, China has become theworld’s second largest economy, and as a major market in which the main enterprisesplay a very important role. But in the process of enterprise development, is alsofacing many challenges, the financing of which the enterprise concern. Comparedwith Western countries, China’s comparative narrow financing channels forenterprises, a serious shortage of own funds. Poor access to external financing, butalso to the development of enterprises has brought enormous obstacles. The problemfor the majority of non-listed companies, particularly serious."Financial difficulties"non-listed company has restricted the development of the "bottleneck" and eventhreaten the survival of the company.The companies usually include self-financing, indirect financing, directfinancing and other means. For non-listed SMEs, the most widely used, the mostfrequent is the indirect financing bank credit intermediation, but bank loans oftenrequire borrowers to provide security. By security companies, mutual guaranteebetween enterprises or collateral can not be achieved, the equity pledge guaranteefinancing as a new way to appear on the horizon in SMEs. However, due to the slowdevelopment of the equity pledge financing, institutional, legislative and judicialpractice there are many problems. But compared to other financing guarantees, equitypledge financing for its low cost, high efficiency advantages, ease the financialpressure on SMEs, still has its significance. In Western countries, the share pledge itsunique advantages is favored by many investors and non-listed companies. Therefore,this article shares of unlisted companies established the existence, in chronologicalorder to achieve the clue to some of the problems that exist in equity pledge elaborate,hoping the theory and practice of non-listed companies benefit Equity MortgageSystem. In addition to the introduction and conclusion, this paper is divided into fiveparts.The first part of the current situation of non-listed companies were combing theEquity Mortgage System. China’s non-listed company equity pledge system is not perfect, mainly in non-listed companies pledged equity risk prevention is missing,there is a vacancy equity pledge registration system, emphasizing safety and ignoreefficiency, overprotective pledgee and the pledgor neglect interests and so on. Inpractical terms, the relevant legal provisions and judicial practice and do not meet. Intheory, there are also over-reliance on the relevant provisions of the chattel mortgageproblems, and did not share pledge for its own particularity analysis.The second part is mainly about the difference between the establishment of thepledge contract and pledge to take effect, the impact of the impact on the equity ratioof equity pledge pledge established equity transfer rules established equity pledge, onbehalf of the holders of equity to set up several issues, such as the case of equitypledge to expand discussion, focusing on the process of establishing equity pledge todiscuss the problems, and to solve the problems presented countermeasures.The third part pointed out that after the establishment of equity pledge, pledgeduring the existence, to be achieved between the pledgee and the pledgor balance ofrights and obligations of shareholders must properly handle several issues, namely thepreservation of equity pledge issue equity pledge breeding ownership interest in theissue, transfer quality protection issues when people pledge, the regulatory qualityshareholder moral hazard problem. After solving the above problem, in order toensure the smooth realization of equity pledge.The fourth part focuses on the problem of achieving equity pledge encounteredwas explained. Non-listed companies to achieve equity pledge also includes discounts,auction, sale, etc., but not the three ways to contribute to the achievement can be wellon the equity pledge. From the perspective of corporate law point of view, when thepledgee equity pledge made by way of discounts, but also to promote its own claimsthrough the "common shares" into "preference" approach. In the equity pledge, theliquid provision is still valid, although the pledgee and the pledgor provides liquidpledge clause in the contract, but in the equity pledge to achieve still not apply thisprovision.The fifth part is analyzed for a special issue of equity pledge of non-listedcompanies exist. In the context of the reform of the capital system of subscription ofequity pledge financing can also be used, but it should pay more attention to the pledge of risk prevention. Shareholders of one company can also be all or part of itsstake in the way of pledge financing may cause the company to change its form oforganization to achieve equity pledge.This paper mainly deals in shares of unlisted companies pledged to discuss theproblems. Due to the non-listed companies, limited liability companies and joint twotissues most typical forms. Therefore, this paper mainly focus on the study of thesetwo types of companies to start only when conducting certain studies to expand thescope of the study questions.