On The Law Of Beneficiary Protection Of Equity Family Trust In China

As a mature system in Anglo-American law system,the trust system determines the rights and obligations of the trustor,the beneficiary and the trustee by relying on the unique case law in Anglo-American law system.As the ultimate beneficiary of the trust,the beneficiary should be responsible for his own rights and interests,so he is the core of the whole trust,and the trustor only has a few rights or no right at all in the trust.After this kind of trust is introduced into China,it has some alienation,that is,the trust law of our country expands the trust structure by taking the trustor as the core of the trust.Although this has played a role in promoting the development of the trust in the early stage of legislation,the establishment of such rights and interests also deviates more and more from the trust purpose of beneficiary protection.The decades of China's economic development have created a large number of high net worth individuals.As they grow older,they have to face a problem of family business inheritance.In the event that the heirs are unwilling or unable to inherit the family business,they can only undertake equity trusts in the family business.When the trust law in our country has not banned stake appear as trust products,but in today's business environment,each want to set up a stake in a family trust people to consider in our current legal system in the grim problem of the beneficiary to protect,so they usually choose to offshore family trust.This causes the outflow of financial funds,hinders the further development of China's financial industry,and is even more detrimental to the financing of the social real economy.Compared with ordinary trust in China,equity family trust has the particularity of uncertain beneficiary,long duration and different purpose.Therefore,the problems of beneficiary protection in equity family trust are mainly manifested as the imbalance and over-generality of the rights and interests of the trustor and the beneficiary,unclear fiduciary rights and interests,lack of supervision agencies,and lack of equity independence.For the first question,on the one hand,should through the clear client right way narrowed its authority,its rights including right to know,agreed to the holder,who took over as the trustee,change beneficiary beneficiary,disputed the compulsory execution,clear trust terminates and equity ownership rights,in contrast to its obligation mainly include the transfer of equity,help the trustee assoon as possible familiar with equity related company duty of the transaction,pay and reward,its tax obligations.On the other hand shall explicitly clear beneficiary's right to adapt its core status,the rights of the beneficiary in addition to the rights of the owner,also including the right of the trust benefits,the supervision of the trust affairs the final say,the right of compulsory trustee trust,and cancellation right and the right to request the trustee shall bear the liability for compensation,the right to require trustee to adjust trust management method,the beneficial right of the give up.For the second question,it is also realized by clarifying the rights and obligations of the trustee.The trustee's rights mainly include the rights of shareholders,the right to claim for the settlement of trust expenses,the right to obtain remuneration,the right to retain equity,and the right to resign.Its obligations mainly include duty of loyalty,duty of care and duty of management.The third problem is solved by setting up a family office as a special supervisory body.In view of the fourth problem,we should carry out the double registration of the trust equity and the trust legal relationship,so as to clarify the independence of the equity.