Research On The Attribute Of Trust As A Commercial Organization

Nowadays, the Trust has completed the historical transformation from a conveyancing device to an institution for managing financial assets. In US, the increasingly dominant use of Trusts is for securitization and other distinctly non-gratuitous commercial transactions. The American law of Trusts also confirmed the Trust as a new form of business organization. However, both American and Chinese legal intellectual tradition still failed to realize the value of the Trust as an instrument of commerce, which is at odds with the reality of modern Trust practice, and will also restrict the development of Trust in our country.In this thesis, the author will analyze and prove the following points: Based on the general rule of the law of Trusts, a Trust has a potential to be a new form of commercial organization. Furthermore, the Trust has the basic attributes of commercial organization, which are"Asset Partitioning"and"Internal Governance Mechanisms".As a commercial organization, Trust will become the most convenient and flexible business tool, and provide a series of transitional forms between the contract and the company.This thesis is divided into four Chapters.Chapter I is the foundational research of the thesis. Based on the history and the practice of the commercial Trust, the author provides a preliminary demonstration of the characteristic of Trust and commercial organizations.Chapter II and Chapter III are the research on the attributes of the commercial organization and the analysis of the general rule of the law of Trusts. Through the analyses of the external and internal legal relations, this thesis illustrates the attribute of trust as a commercial organization. And this conclusion means that the Trust can achieve both the"Asset Partitioning"and"Internal Governance Mechanisms"Then, Chapter IV is the demonstration of the value of the Trust as a commercial organization. On its very nature, Trust is a tool to reduce transaction costs. As a commercial organization, Trust has great flexibility and can provide a range of transitional trade tools to the people.