Research On Legal Issues In Trust System Of Equity Usufruct

Equity usufruct trust is a relatively new type of trust system, which has achieved rapid development in recent years, and becomes a highlight in China’s trust. In practical life, equity usufruct trust can not only provide a new way for corporate finance, but also attract many investors with its high returns. Therefore, it is popular among financiers and investors, and many trust companies starts running this trust business. However, China’s equity usufruct trust is still in its infancy stage, the legal position is not clear, and the legal problems are frequent. So it is necessary and important to give a research on equity usufruct trust.This paper is mainly consists of three parts. The first part is the basic concept and legal nature of equity usufruct trust, it analyses the legal structure of equity usufruct trust, then obtain that it usually includes two trust relationships. And it analyses the characteristics of the equity usufruct trust, such as short-term, lots of beneficiary, repurchase and rights diversification. This part also compares equity usufruct trust with assets usufruct trust, investment trust, stock trust and voting trust which can help understand equity usufruct trust better. The second part researches the problems of China’s equity usufruct trust from trust establishment, operation, regulation and taxation. It is obvious that only relied on existing "one law and three rules" cannot solve these problems. In the third part, the author puts forward some suggestions according to the above legal problems. At first, the trust regulations must be standardized, its name should be uniformed, its register should be efficiency defined, and its contract terms should be detailed. Secondly, the system of information informing must be available to protect investors’ rights. Thirdly, the supervisors and their supervisory duties of equity usufruct trust must be distinct and clear. At last, the taxpayer and basis of assessment should be regulated. Equity usufruct trust has many functions, such as social financing and equity usufruct sharing, so it has a bright prospect. The theory study on the legal issues of equity usufruct trust will regulate the confusing equity usufruct trust market, and prompt it playing an active role to improve the whole China’s trust business development.