Legal Regulations Of The Voting Trust

Voting trust means the shareholder removed its right of voting, which is based on its share, to the trustee for legitimate purposes in some certain period. The trustee would exercise the voting right according to the contract and law. It is a special trust and has greatly flexibility,which can play a strong role in holding the the company, broadening the financing channels, saving the company,etc. Because of its unique value, voting trust has been accepted by some company practices and Company LawThere have been lots of typical voting trust cases since it was introduced into China in the 1990s. However,with the rapid development of voting trust, it is a long-term absence of voting trust legal regulation. China’s existing laws and regulations don not prohibit voting trust, but there is no clear recognition of its legal validity. Therefore, voting trust is facing a lack of substantive systemic regulation and the possibility of abuse. This paper focuses on voting trust legal regulations and tries to expound the connotation and denotation of the voting trust, to draw on extraterritorial voting trust legal regulation. Then, on these bases, attempt to frame our voting trust regulatory framework.The full text consists of three parts:the introduction, the straight matter and the conclusion, and the main body is divided into four sections. The first chapter outlines the theoretical foundation of voting trust and its legal regulation by discussing the meaning, features, the constitution of its legal relationship and the reason why it can emerge. After this, analyses the necessity of voting trust regulation from political science, economics and the angle of economics. Finally, we conclude that the voting trust does have very unique functions, but also hidden a huge risk of abuse. Voting trust legal regulation is necessary not only from the perspective of the public, but also from the economic development.The second chapter is about Chinese voting trust condition and problems. While voting trust is widely used for various purposes, China is still not voting trust statutes. Analyzing voting trust according to the Trust Law, Company Law and other relevant laws and principles,there is no doubt that voting trust could gain legitimacy. But when it comes to the establishment, the exercise of specific matters, the exciting laws cannot solve these problems.The third chapter is private governance mechanisms. The people who operate a voting trust always want to safeguard their own interest enthusiasm, regardless of whether they are involved in national laws. They would like to take the initiative to regulate voting trust through contractual mechanisms and moral credibility mechanism. Therefore, we need to pay more attention to private governance.The fourth chapter is the statute system. Based on our voting trust practice situation and the successful experience of the United States voting trust legal regulation, Voting Trust Legal Regulation requires more specification enactment system. Laws, such as Company Law, Trust Law, Securities Act and other relevant laws and regulations, should be modified.The fifth chapter is about judicial intervention. In order to maintain the stability and authority of, the law tends to be more abstract statute. The administration of justice plays a very important role in voting trust regulation. Case hearing, the guiding case publishing and announcing formulate judicial interpretation can give lots of help.