Legal Regulation On The Commercial Trustee’s Duty Of Loyalty

It is a substantive function to Trustee of research the duty of loyalty to Commercial Trustee,such as its financial management, financing capabilities, deepen trust financial sense for investors.This article studies from the perspective of Economic Law and Economic Analysis of Law,distinguishing it from the current analysis. This paper mainly divided into the following four parts:The first part analysis on the duty of loyalty from legal theory: The first, analysis fromEconomic Analysis of Law, such as rational person, economic transaction costs, economicefficiency,concluding that it is an efficient organization to endow trustees with the duty of loyalty,to solve the problem of asymmetric information and externalities to a certain extent; The second,operating the duty of loyalty from the consumer finance theory, economic principles, economicfairness, elaborated to make some reasonable restrictions on the financial institution or given aspecial obligation to make a modest financial consumers, competing with financial institutions, toachieve substantive equality.The second part describes the legislative status quo faithful trustee business obligations: Thefirst, direct operating provisions trustee duty of loyalty is divided into general provisions in favor ofthe interests of the negative behavior of the provisions of exceptions, and its obligations under theFourth a part of our current legal system is not the lack of trust of the duty of loyalty trustee for thebenefit of the business in the best interests of the provisions of the handling of trust affairs, atdifferent levels of the legal effect of the trustee ’s duty of loyalty has been reaffirmed many times;The second, operating trustee indirect reflect faithfully the obligations, mainly for informationdisclosure, disclosure of information relating to the business of the trustee ’s duty of loyalty relatedtransactions made more detailed provisions; The third, the legislative defects of the obligationspopularly exist, such as the general dispersion of the faithful, the imperfect responsibility system,the imperfect information disclosure system, the lack of incentives.The third part describes the content of the obligation to improve the basic operating system ofthe duty of loyalty. Operating as a professional trustee financial institutions, depending on therequirements of their duty of loyalty to state intervention in the economy, protect the vulnerable position of financial investors are more properly, There is a need to clarify the meaning of thelegislative duty of loyalty, refine the corresponding rules, reflecting the faithful duty status as acore obligation of trust, rather than being similar to the principle of good faith. The first, we canmake principled requirements of duty of loyalty to do the following provisions in the " Trust Law":The trustee shall comply with the provisions of the trust documents for the benefit of the bestinterests of the handling of trust affairs, avoid severe conflicts, prohibits the use of trust forpersonal gain, prohibit the inherent property into the trust property and prohibit competition withinthe industry; The second, Opening the trustees of the duty of loyalty to refine the negativebehavior, prohibit the use of trusts operating profit trustee refinement, refinement prohibitself-dealing rules prohibit specific provisions related transactions, prohibiting competitive conductin the supplementary regulations; The third, make clear the legal responsibility, namely to be clearfrom the civil, administrative, criminal and litigation burden of proof.The fourth part is writing to improve the content of the duty of loyalty trustee businesssupporting systems: The first, elaborate the value of the information disclosure system in theregulation of the trustee’s duty of loyalty and the relevant legislation in other countries or regions,so as to improve the information disclosure system of the duty of loyalty recommendations. Thesecond, elaborate the value of credit rating system and the relevant legislation in other countries orregions, in order to improve the credit rating system.