The Deficiency And The Legislative Correction Of China's Floating Charge

Produced in the UK equity, the floating charge has broken the " eine sache, ein recht" and the principle of "specialization of the corpore", fully emodies the value" turn material resources to good account ", gets the widespread praise of the world. China's "Property Law" has also introduced the system and basically formed the general outline of the floating charge by Article 181,189andl96. But only three articles about the floating charge can not solve the problems in the actual operation. The shortage of the existing provisions and the lack of operating system get the floating charge system into a variety of difficulties. It's necessary to perfect the existing legislation from all aspects of the running system, based on the China's actual need, in order to give full play to the specific functions of the floating charge. By reviewing the basic theory of the floating charge, the article clears the advantages and disadvantages of the system; by examining a few typical cases of legislation, combined with our existing requirements, the article explores the best legislation which can avoid weaknesses and be consistent with the system's trend; in the view of the mortgagee, the article raises some countenmeasures that the mortgagee can take. The article seeks to improve our floating charge by making corrections of our legislation system and the floating mortgagee's adopting positive countermeasure, to make the system be well used by all parties, so that it will solve the funding problems of small and medium enterprises, individual businesses and agricultural producers.