The Legal Analysis Of The Convertible Preferred Stock

As China’s financial market gradually opening, more and more financial instruments are used. In China, on March 21, 2014, the preferred stock system as a kind of flexible financial instruments are written in the implementation of the pilot measures for the administration of preferred stock.There are much more researches for preferred stock system than the research about system of convertible preferred stock. In order to explore the applicable development model of convertible preferred stock system in China,the author analyze a series of legal documents of convertible preferred stock system by the pilot measures for the administration of the preferred stock, the guidance of the pilot implementation of preferred shares of the state council, the relevant person in charge of the China banking regulatory commission, securities regulatory commission(CSRC) < about commercial Banks to issue preferred stock supplement tier-one capital guidance > a reporter asked.Full text is divided into three parts. The first part is about the overview of the system of convertible preferred stock. This part mainly consists of two parts.On the one hand, about the system characteristics of convertible preferred stock.And about the purpose of the law value of the system of convertible preferred stock in practice. In this part,in order to sum up the general characteristics of convertible preferred stock system, the author discuss the legal value,and build a structure of convertible preferred stock system.One the other hand,about the analysis of the foreign legal system of convertible preferred stock. Because of United States and France have specific provision, so the author make the introduction of convertible preferred stock from the two countries and sum up the characteristics of these two countries system of convertible preferred stock, for our country to better establish legislation technology support system of convertible preferred stock.The second part is the legal analysis of convertible preferred stock system in China. This part and the fourth part is the key of the test. The author do the analysis from three aspects. First, the convertible preferred stock systems features at present stage. Second, the legal analysis of article 33 in the pilot measures for the administration of the preferred stock. Third, the convertible preferred stock defective legal system at present stage. The author explore our convertible preferred stock system characteristics from the provisions of China’s current system. Since the convertible preferred system in China is mainly defined in the pilot measures for the administration of the preferred stock, so in order to make the foundation for a final reasonable legal advice,the author analyze the legal reasons and legal effect in practice one by one in the pilot measures for the administration of the preferred stock.The third part is about the legal advice of the convertible preferred stock system in our practice applications. According to previously relevant theoretical inquiry, I learned from our national conditions, and make four advises. First, we must improve the relevant laws and regulations. Second, we must make the convertible preferred stock system more flexible. Third, we must expand the scope of the pilot convertible preferred stock system, allowing convertible preferred stock traded circulation. The fourth is to make the classification of the foundation of convertible preferred stock system, to focus on the protection of the right to control the state-owned holding company.