Analysis Of The Relationship Between Ownership And Creditor's Rights Of Rural Mutual Fund Organizations

Rural mutual fund organization have emerged and have continued to flourish in the current context of formal financial institutions failing to meet the financial needs of agriculture,rural and farmers.Due to the differences in resource invested in rural mutual fund organization,members can be divided into core members and ordinary members.The core members and the ordinary members obtain the qualifications by investing in the shares of the rural mutual fund organization,and invest mutual funds into rural mutual fund organization.They can receive proceeds based on the invested funds and mutual aid funds.The core members and the ordinary members constitute the community of interests-'profit sharing,Risk sharing'.However,it has been found that core members and ordinary members,as shareholders ofRural mutual fund organization,participate in different standards for the distribution of income according to the field research.The core members can obtain share dividends through the invested equity,while the ordinary members can only obtain higher shares than the localRural commercial bank depositing interest over the same period.In the event of bankruptcy of rural mutual fund organization,the core members assume the losses up to the amount of funds invested,and mutual assistance funds invested by ordinary members are difficult to be returned,making it difficult for ordinary members to protect their interests.Whether members and rural mutual fund organization belong to the equity relationship or creditor's rights relationship not only affects the benefits that can be obtained by the members,but also affects the size of the risks that the members undertake,especially when the Rural mutual fund organization enter bankruptcy liquidation procedures.Therefore,it is necessary to discriminate the legal identity of the rural mutual fund organization from the core members and ordinary members,so as to clarify the true identity of the core members and ordinary members in the Rural mutual fund organization and protect the interests of the members from the source.Based on the above analysis and the research background of 69 rural mutual fund organizations in Yancheng and Lianyungang of Jiangsu province,this paper combines the field research data of rural mutual fund organizations from 2008 to 2016.The main research contents are as follows:(1)According to the nature of the relationship between equity and claims and combining with the characteristics of rural mutual fund organizations,analyzing the legal relationship between members and rural mutual fund organizations from the aspects of democratic governance,income distribution,and risk-taking,so as to identify that whether the legal relationship of the mutual funds is consistent with the policy requirements.(2)Based on analyzing the conflict of interests between the large shareholders and minority shareholders,the shareholders and the creditors,analyzing the conflicts of interest among the members of the rural mutual fund organization.Then analyzingthe alienation path of the equity relationship in the rural mutual fund organization.(3)Using stakeholder theory to analyze the influencing factors of the alienation of equity relations between members and rural mutual fund organization.(4)Using the case empirical analysis method,select typical cases from the sample of the study,and analyze the alienation of the equity relationship between the members and the rural mutual fund organization from the aspects of democratic governance,income distribution,and risk sharing.An analytical framework was constructed to analyze the formation mechanism of the alienation of equity relationships between members and rural mutual fund organization.(5)According to the internal mechanism of the alienation of the equity relationship of rural mutual fund organization in the theoretical analysis and empirical analysis of the case,put forward targeted and operational suggestions in order to standardize the operation mechanism of rural mutual fund organization and standardize their members'legal identity.The legal relationship of the rural mutual fund organization protects the interests of ordinary members and improves the quality of financial services provided by rural mutual fund organization.Through the analysis of the legal relationship between members and rural mutual fund organization,and the discussion on the alienation path and formation reasons,this paper mainly draws the following conclusions:(1)During the operation,the equity relationship between members and rural mutual fund organization has been alienated.Compared with the equity relations defined by the policies,ordinary members and rural mutual fund organization form a'virtual' debt relationship with respect to their rights and income distribution.However,at the time of the bankruptcy liquidation of rural mutual fund organization,ordinary members and rural mutual fund organizationis still the equity relationship in the policy rules.But the core members and rural mutual fund organization have always maintained the equity relationship in the policies.(2)The alienation path of the equity relationship between members and rural mutual fund organization is shareholder?creditor?shareholder,which is divided into two levels and three nodes:When the ordinary members join the rural mutual fund organization and participate in the distribution of income,the ordinary member's shareholder status was debtification.When ordinary members assume the risk of rural mutual fund organization,especiallyentering bankruptcy liquidation procedures,the status of ordinary members changes from creditors to shareholders.(3)Before the ordinary members join the rural mutual fund organization,the core members mainly use their information advantages to the ordinary members to conceal the risks that should be borne by the rural mutual fund organization so that ordinary members can make adverse selections.When ordinary members join the rural mutual fund organization,the differences between the core members and the ordinary members in terms of "interest claims","responsibility","ability" and "willingness" make ordinary members have no rights to enjoy the rights and voluntarily waive control.By participating in the day-to-day operation and management of rural mutual fund organization.The core members grasp information advantages,and take control of rural mutual fund organization to take opportunistic behaviors that encroach on the interests of ordinary members.However,the general "free-rider" behavior of ordinary members and the lack of external supervision make it difficult for supervisory effectiveness to be effectively used.Based on the research conclusions of this paper,the following policy recommendations are proposed:(1)Strengthen information transmission to relieve information asymmetry between common members and core members.(2)Control the differences in the input of money and capital by members to prevent 'actively stealing control rights' and 'proactively giving up control rights'.(3)Control the proportion of core members in the "three sessions",increase the participation of ordinary members and establish an effective external supervision mechanism..(4)Establish an industry self-regulatory organization.