Research On The Legalization Of Government Financial Platform Companies

Government platform company is China’s local governments to circumvent laws and regulations prohibit the direct financing and the choice of a flexible approach, which assumed the country’s major urban infrastructure financing mandate for local economic and social development as well as enhance the image of the city to make significant contribution, especially in the last two years in response to the international financial crisis has played a positive role.Government platform company there are many issues, such as corporate governance structure is imperfect, the main responsibility is not clear, operating procedures are not standardized, single financing channel, etc., especially after2008, the national response to the economic crisis has taken a proactive fiscal policies, coupled with some of the government’s security breaches, some banks risk consciousness, eventually prompted the government platform for the company ’s credit facility has expanded rapidly. June2010began, the State Council has issued a document to strengthen the company’s management of government platform, followed by major banks have suspended loans to local government financing platforms have lost the most important, or even the only financing channel, facing the risk of capital chain rupture Clearly, the government platform companies should strengthen self-construction, especially to improve their financing capacity, eliminating excessive dependence on bank lending.The legal basis for local government financing platform for the company guarantees issued by legal barriers exist to government credit and financing platform for the company’s solvency risks, triggering scholars government platform company may bring systemic risk concerns. Therefore, the local government platform company legal analysis, standardized platform for the company to strengthen run to prevent its development in the process of legal risk has important practical significance.In this paper, a legal analysis of the government platform company is the first step the government to define the legal nature of the platform. Currently theorists government platform companies and local governments are the legal relationship between the agency and the administrative authority between the two statements, but the two are not sure of the legal nature of the government platform for the company’s fundamental properties. First, the government has full civil platform company is an independent legal person qualification, which does not exist between the government and local administration commissioned the relationship be characterized as administrative authority relationship is not compelling, while the government platform for the company because of its contribution and shareholders are local government, it is simple as an independent legal person is one-sided. This article from the government platform company in the actual operation look at the relationship with the local government, the legal nature of its defined as fiduciary relationship.In defining the company and the government platform fiduciary relationship exists between the local government after the article on the rights and obligations of the government platform company has been configured, the content of its rights and obligations from the relative rights and obligations of each party is the local government and the two main market be considered. On the one hand, the government platform company provided the requirements of the "Company Law established condition that the legal entity with an independent will enjoy independent corporate entities should enjoy the right to have an independent corporate property, but also as an independent corporate commitment should obligations. On the other hand, the local government as a government platform for the company’s investors and shareholders. in the actual operations of government platform for companies to make real the control, but this appointment and removal of the control can be achieved and operational decision-making therefore, the government platform rights and obligations of the company should not be required by law to emphasize and reflect.As mentioned earlier, our country government platform company is the local government to circumvent laws and regulations prohibit the direct financing and the choice of a flexible approach, which was first established on color blooming with the government’s "original sin". the corporate governance structure is not perfect. which is also due to irregularities in the operation guarantees. investment is not real, and other causes of capital flight is difficult to realize its collateral solvency worrying, easily lead to local government credit crisis, financial institutions, systemic risk. To address this situation, the author from the government platform company existing legal risk, analyzes the company’s legal risk government platform causes for the company’s legal government platform feasible suggestions.In the company’s legal government platform regulation, the author describes the government platform company in legalization practical needs and legal regulation goal, mainly from the government platform of internal norms and external two aspects of institution building improvements.