Research On The System Of Trustee's Duty Of Prudence

Trust originated in Britain and flourished in the United States,and gradually introduced into China after the reform and opening up.Therefore,China's trust law system is also constructed in accordance with foreign laws,and most of them are in principle,especially in the aspect of trustee's duty of prudence.There are few specific laws to be quoted in the judgment.Article 25 of the Trust Law of the People's Republic of China stipulates that the trustee shall abide by the provisions of the trust documents and handle trust affairs for the best interests of the beneficiaries.In managing trust property,the trustee must abide by his duties and fulfill his obligations of honesty,credit,prudence and effective management.This provision on the trustee's duty of prudence is too principled.There are no more explicit provisions in other laws.Caution is an adjective,which can only be applied by corresponding reference standards.The stipulation of the duty of prudence in the Trust Law is too principled,which is not only a technical issue in legislation,but also an important issue in practice.Through the analysis of three specific cases,such as Li Pei's and Sino-Thai trust contract disputes,and by comparing the advanced foreign legislation,this paper explores the legal issues of the trustee's duty of prudence in China's trust system and tries to analyze the reasons,so as to improve the trustee's duty of prudence from the legislative point of view in terms of judgment criteria,legislative conception and liability undertaking.This article is composed of four parts as a whole: the first part is mainly from the perspective of Li Pei's and Sino-Thai trust contract disputes and Jiang Wei's and Sino-Thai Finance Trust Contract disputes,causeless management and unjust enrichment disputes.The case of trust disputes between Beichuan Autonomous County Rural Credit Cooperative and Shandong International Trust Co.The second part is to summarize the controversial focus in the case and to analyze the relevant jurisprudence needed to solve these controversial focus.The third part is to analyze and summarize the dilemma and difficulties of trustee's duty of prudence in China.The fourth part puts forward corresponding suggestions for the former part,including clarifying the judgment standard of the trust trustee's prudent obligation,improving the legal framework of the trust trustee's prudent obligation rules,and establishing the accountability mechanism of the trust trustee.