Defects Equity Collateral Legal Effect Research

Equity mortigation are increasing in nowadays as a guarantee of finance, This in one hand make pledgee easy to access to funds. accelerated economic development, but the existence of flaws of equity stake, increased the risk of pledgor. Equity flaws refers to shareholder invested deficiency, false capital contribution, pulls out investment. Equity flaws capital mainly divided into completely fails to inject capital and did not inject capital properly. This article is to disscuss the legal effect of equity flaws, and mainly talk how to protect the interests of mortigator. After that will conclude how to construct the mechanism of the right protection for mortigator.This article paid special attention to the legal effect of flaw equities mortigation. the paper generally divided into four parts, from the four aspects of flaws equity shares。ChapterⅠdefines the concept of equity, and points out the major flaws of equity is that shareholders did not inject capital to company in accordance with the laws, articles of association, capital funding agreement and the relevant regulations, not full funding, false funding and withdrawal funds when company was estabalished. And specifically defined the concept of the characteristics of defect Pledge, and on this basis, obtained the two forms of equity flaws. ChapterⅡdiscussed the premise and effective elements of equity pledge, and primaryly analyzed the prerequisite for the eligible of shareholders, not properly inject capital and did not inject capital. If not properly or did not inject capital not caused company void, the shareholders will enjoy the right. Effective elements of defective Pledge of property law must sign written contract in accordance with the relevant provisions and the shares can transferred. ChapterⅢdiscussed the legal scope of equity mortigation under the premise that the equity flaws having legal effect, ranging from the effect of physical confrontation, the pledge and pledgee.Equity shares mortigation have effect on shares, the legal fruits and subrogation matter. When equity was mortigate, the pledgee has the right to receive yields, but the ownership of fruits remain owned by the pledgor. The effect to the pledge is divided into sub-total of human rights and self-beneficial interest described in two parts, The right to self-interest still belongs to the pledge, as the mortigation has not changed the status of its shareholders,he is still the owner of equity. but rights is limited, the pledgee does not have the qualification as a shareholder, the pledgee can not exercise the above rights.Qualitative benefits that were the right of voting shares, convene an extraordinary claim, right to access to documents, right to attend shareholders meetings and other rights must be exercised with the identity of the shareholders, the pledgee cannot exersise all the above rights as he did not enjoy the shareholder's status, and therefore not entitled to a total benefit of their rights.ChapterⅣanalyzes all kinds of ways to make equity flaws implemented and comprehensively analyzed the moral, market, and legal risk of the mortigation. Risk prevention measures proposed under comparing all the existing legal provisions, and summarized that Pledge of flaws in violation of the rights can choose the best one to protect their rights. In accordance with breach of contract and tortremedies. Moreover, the pledge can use judicial measures to ensure the fullfillment of mortigation. On improving measures of equity, the paper proposes that the legal provision should define that the shareholder who did not inject capital or not inject properly should bear obligation to inject all the capital that he should inject. Also this paper recommended that the allocation of legal responsibilities should different and should based on subjective factors...