Study On The Laws Of Equity-based Crowd-funding In China

Equity-based crowdfunding is an investment method that financers acquire capital to develop their enterprises through selling a certain equity,while investors will achieve investment return in the future through buying stocks.Compared with common financing ways,the equity-based crowdfunding involves in three main categories:first,the direct use of the Internet platform to carry out equity financing activities,the technical requirements are higher;second,small micro,start-up enterprises access to financial procedures convenient,low investment threshold to increase the general public investment channels;third,because of its fund-raising for small micro-start,start-up enterprises,which shows that the risk of such enterprises is weak,for investors,the risk of such investment channels corresponding higher.According to the contractual relationship between the two,the financing model can be divided into three categories:direct investment model,stock ownership platform and the "cast + with investment" model,which uses the most common model as " + With the vote "mode.China's current position on the equity holders to take a positive attitude,mainly because the equity investors is to ease the financing of start-ups,the implementation of China's "public entrepreneurship,innovation" policy,the establishment of China's multi-tier capital market is of great significance to the Internet finance and Economic development has a positive role in promoting.At present,the development of Internet equity is not yet mature,and there is no perfect supervision system.There are many social and legal problems in practice.This is mainly embodied in legal risk and moral hazard.Legal risks consist of the risks from illegal fund raising,illegal issuing of securities,and the risks from intellectual property right,which are explained from the perspective that the equity-based crowdfunding are against the existing laws.Moral risks are expressed from three major bodies,namely the incompetence or even negligence of duty for the equity-based crowdfunding platform,the dishonesty of the fund raiser,as well as the risks between the interest of the laziness of the leading investor and the income of other participated investors.In view of the above risks,the United States and Britain,which are more developed by means of equity development,understand the main legislation and supervision system of the two countries on equity ownership.The United States mainly through the representative "JOBS Act" and its latest introduction of the third part of the "SEC regulatory rules" analysis;the United Kingdom is through "on the network and through other means to promote the difficult to implement securities regulatory rules" to assess the rules of its provisions.After the current situation of China's equity and its "private equity financing management approach(Trial)(draft)" to sort out the following points ambiguity:First,the "management approach" will be the nature of equity ownership of the scope of private equity,which shows that equity can not be public publicity,which is clearly the ownership of the various properties of their own contradictions.Second,the ambiguity of the qualitative and functional provisions of the equity pooling platform includes:attribution of the legitimacy review to the platform itself,to some extent a conflict of interest,affecting the neutrality of the platform;,In the "management approach" is only in general,and there is no practical practice can be practicable;ownership of the platform to prohibit the provision of equity transfer services,means that the restrictions on the investment of investors,and for the transfer of equity The exit path is also limited,which will affect the investor's enthusiasm for investing in equity.Thirdly,there is no specific guarantee of the performance of the system for the duties of the fundraiser and the prohibition of behavior.Fourth,for investors in the basic lock in the high net worth of the crowd,the general small and medium-sized investors shut out,and the mobilization of the target investors is the majority of ordinary small and medium investors.By clarifying the shortcomings of our legislation,combined with the success of the legislation and supervision practice of the United States and Britain,the author puts forward the enlightenment of the two countries on the ownership of our country:the legislative focus of the United States and Britain lies in balancing the good people and investors Interest relationship;from the protection of investors,by limiting the investment of investors to coordinate the relationship between the two to achieve the organic unity of the two.The United States is defined by the ratio of the total amount of the investment to the annual income or the total amount of the assets;the United Kingdom is regulated by a certain percentage of annual income or total assets.Through the analysis of equity ownership system and practice,put forward the views on the supervision of equity ownership.On the one hand,we should clean and correct the legal obstacles during the development of equity-based crowdfunding,which mainly involves the crime in illegal fund raising and illegal issuing of securities in criminal law;On the other hand,it discusses about how to construct specific systems to consummate the current laws on equity-based crowdfunding from the perspective of three major bodies.First of all,the supervision about the equity-based crowdfunding includes requiring the platform to strengthen the education for investors,standardizing the platform procedure,establishing the information disclosure system of the platform and the supervision mechanism for risk disclosure,introducing the cool period mechanism of Britain,establishing perfect social security system,and encouraging the equity-based crowdfunding platform to undertake the responsibility of warranty.Secondly,the constraints for fund raisers include establishing small amount of issuing exemption system,setting the upper limit for the financing of A single project,establishing the information disclosure system of fund raisers,and establishing equity lock period system.Thirdly,the restriction for the leading investor and the protection for other participated investors include establishing the admission mechanism for "leading investor",as well as establishing the authentication system for qualified investors and return mechanism for investors.Through the above mentioned measures,we expect the development of equity-based crowdfunding in China to be healthier and more perfect.