A Study On The Legal Problems Of Establishing Family Trust In Company Stock Right

"A gentleman’s honor is to be executed after five lifetimes".The guarantee and inheritance of wealth is not a smooth and orderly process from ancient times to the present.In the face of this problem,the trust system is born.The trust system is an excellent property system with stability,flexibility and security.It has many functions such as property management,risk aversion and asset management.With the development of trust business,investment business,wealth management business and asset management business gradually replace financing business as a new business growth point,with the development of Family Trust,stock right,as property right,has natural advantages in value and scale,and is favored by many financial institutions.Equity Family Trust is still at the initial stage in China.Although there is a large market,there are still some institutional obstacles to the development of Equity Family Trust in China at present.The establishment of the system obviously lags behind the innovative development of trust projects,and there is no clear,specific system to regulate the Equity Family Trust,which to a large extent hindered its development.Difficulties in the operation of establishing Equity Family Trust,it mainly includes the difficulties in the application of the law,the legal responsibility of the trustee,the ownership of the trust property,the registration of the trust,and the taxation of the family trust.Although it is difficult to set up equity family trust in China,it is feasible in law,economy and organization.Legally,our country has Trust Law of the People’s Republic of China,Civil Code of the People’s Republic of China,Company Law of the People’s Republic of China and so on to provide the basis and the safeguard for the company stock right to establish the family trust,ping an private bank and Forbes China have released a 2020 China family office white paper,which shows the total wealth of China’s richest people on the list has reached 14.1 trillion yuan,the total wealth for the same period a year ago was 9.1 trillion yuan;organizationally,35 of the country’s 68 trust companies have launched family trust businesses,and head trust companies have all issued equity family trust products,and the Family Trust Office is also in the rise,private banks,third-party wealth institutions have begun to get involved in Equity Family Trust this "blue sea.".As for the path of establishing corporate equity trust in China,this paper analyzes two kinds of path design of Corporate Equity Establishment Trust,namely,"Fund +SPV" mode and "equity + SPV" mode,although the domestic equity family trusts use the "fund + SPV" mode,but "equity + SPV" mode has its own advantages,if there is no institutional barriers,it will be a widely adopted structure.The property registration system in trust has always been a difficult problem to be solved urgently in the development of family trust of stock right in our country.At present,when the stock right as property right is entrusted to the trustee by the trustor,there is no special organization to register it,it makes the ownership of the trust property in the form of property rights unclear.Therefore,it is urgent to establish a new non-tradable share transfer registration system,or improve the current China Trust Registration Limited liability company functions,to undertake the task of property rights registration.This paper holds that the registration of trust property can be carried out in the form of "decentralized registration of trust property" or "uniform classification of trust property".The current tax system has also hindered the development of equity family trusts.The purpose of the trustee setting up the family trust for the company’s equity is for the long-term development of the enterprise and the stable inheritance of the family.After the liquidation of the trust project,the shares of the company are generally allocated to the principal or beneficiary in their original form,and the trustee does not ultimately hold the shares,nor is the trust established with the intention of transferring the shares of the enterprise.However,in practice,the transfer of shares will generally be increased taxes and fees,which will lead to the establishment of such a trust costs increase.When a trust is established,the trustor entrusts the property to the trustee,who manages the property in his own name,which is beneficial to the protection of the information of the trustor and the beneficiary,however,there is also the possibility that the trustee will harm the interests of the client and the beneficiary,which requires the trustee to disclose the information in the trust project strictly and carefully,and to reduce the information asymmetry between the two parties.In the current environment of strict supervision and rapid transformation of the trust industry,it is a general trend to return to the original business of the family trust.However,at present,the situation of the equity family trust is characterized by " there are a lot of responses,but very few people implement them" and "thin profits",which makes the customer demand vigorous,the product scale is difficult to expand.Therefore,it is of theoretical significance and practical value to solve the "pain point" and perfect the path of establishing the family trust.