The Defect Of The Financing Guarantee Company Rights And Interests Protection System And The Remedy

The purpose of setting up the financing guarantee company at the beginning is in orderto solve the financing difficulties of SMEs(small and medium-sized enterprises), but with thedevelopment of financing guarantee companies and an influx of private funds, financingguarantee company also undertakes to improve the employment rate, boost credit systemconstruction and implementation of industrial policy mission. The healthy development offinancing guarantee company is conducive to realize the policy objective of SME financings,as well as conducive to realize macro-control goals. So to protect the interests of the financingguarantee company has a certain practical needs and objective necessity. The scope of thecredit guarantee industry should not only be limited to protect the interests of SME financing,but also pay attention to protect financing guarantee companies’ interests. Excessive protect ofSMEs interests leads to flaws of financing guarantee company’s rights protection system.While the legal system of relief of financing guarantee companies is not perfect, it tends tolead to difficult to achieve their legitimate rights and interests. The development of financialservices, such as credit guarantee, SMEs financing and optimizing the allocation of socialresources are adversely affected by flaws of interests of financing guarantee company securitysystem.To perfect the security system of financing guarantee company should first determine thefinancing guarantee from the Company’s equity connotation start to recover the right.Recourse, information investigative powers, operating income and self-management rights arethe essential rights of survival and development of financing guarantee companies. Thedefects of security system of financing guarantee company are mainly reflected in these fourrights with little protection. The fundamental reason is that legislature biased in the interestsof financing guarantee company and the interests of SMEs, resulting in the imperfect legalsystem to protect the interests of financing guarantee company. To make up the defects of theinterests of financing guarantee company security system should not only fully protect therights of survival and development of financing guarantee company, but also to realize itspolicy objective to promote SME financing. It is the dilemma of remedy deficiencies.Meanwhile, compared to developed countries, China’s financing guarantee industry has somespecial characters. A high proportion of commercial financing guarantee institutions required to more market-oriented mechanism to optimize resource allocation function while making upfor deficiencies in the country’s financing guarantee company’s rights protection system.Remedy defects of security system of financing guarantee company should improve thesystem to protect recourse, information investigative powers, operating income andself-management rights, but should also improve equity relief legal system to promote equityof financing guarantee company from the state ought by law to real natural state.