Legal Regulations Of Equity Crowdfunding Platform

Equity crowdfunding refers to a new financing method that the project sponsor initiates the project on the Internet and promises stock right in return. As a big branch of the Internet financial, equity crowdfunding has been developing rapidly since it logged in China in 2011, especially in 2014,it presented a spurt of fast growth.But it is mess in actual operation because of no relevant laws and regulations to regulate it.As with the equity crowdfunding industry's rapid development and growth,it ushered in the first case of legal disputes.Beijing Haidian District Court formally accepted the case of the the equity crowdfunding which "renrentou" platform prosecuted catering enterprise Nuomiduo Inc.on May 15, 2015.Then the third civil court's judge of Haidian District Court,also the chief judge of this case,Yinhua pronounced a judgment for the plaintiff Feidu Inc.( "renrentou" platform) and the defendant Nuomiduo Inc. should pay the plaintiff the entrusted financing cost of 25,200 yuan and the iquidated damages of 15,000 yuan on September 15, 2015.Beyond that, Feidu Inc.should return all the contribution of 167,200 yuan to Nuomiduo Inc.. At this point, the much talked about ‘the first case of the equity crowdfunding which lasted for four mounths finally had a legal result.So this paper will take the first dispute case about the equity crowdfunding as an example.To begin with, the text introduces the origin and the classification of the equity crowdfunding,and then describes the risk during the actual operation in our country.Next, making supervision suggestions about the equity crowdfunding platform through the analysis of the running status of the equity crowdfunding in our contry. This paper is ultimately aimed at promoting the healthy and rapid development of the equity crowdfunding in our contry.The whole article is divided into four parts:The first part states the details and the focuses of dispute of the case. This dissertation first introduces the first dispute case about the equity crowdfunding,and then gives the detailed description about the case, finally extracts two focuses of the debate as follows:Firstly, whether the crowdfunding agreement is valid.Secondly, whether or not "renrentou" platform telling information to numerous investors is proper.The second part introduces the basic theory relevant to the equity crowdfunding platform. The article first describes relevant concepts, operation mode and charge mode of the crowdfunding platform. Then it elaborates the referred legal relation about the equity crowdfunding platform,including to the investors and fund raisers.The third part of the thesis illuminates on questions of the equity crowdfunding platform's current situation of supervision and the existing problems. The regulation of the equity crowdfunding platform in our country mainly refers to the administrative measures of private equity crowdfunding which issued by securities industry association in 2014, the guidance jointly issued by 10 ministries which is aim at promoting the healthy development of the internet finance and the administrative measures of curb stock business filing issued by securities industry association.But these supervision systems do not do very much in actual regulation, duing to the lower-level of the supervision rules,some having not yet gone or the regulation is too general.However,we can see the thinking of supervision clearly through combing these regulations.The fourth part makes suggestions to the supervision of the equity crowdfunding.Base on the previous description,this paper will combine the existing problems in the equity crowdfunding's actual operation, put forward the supervision strategies of in advance, in the courts, afterwards, so as to promote the equity crowdfunding platform's healthy and rapid development. The proactive regulation and supervision to crowdfunding platform mainly refers to have a clear orientation to the character of crowdfunding platform.Only after the character being clearly orientated,can we properly set the obligation and the responsibility that it should fulfill.Then the pro-seo regulation to crowdfunding platform mainly requires the platform to disclose the relevant information of financiers' timely and accurately.At the same time,it should conduct informative and duteous investigation against the financiers, give suitable warings to the investors and forbid the crowdfunding platform finance for themselves.The post-mortem supervision to crowdfunding platform mainly involves the exit mechanism and the disputes mediation mechanism.If we want that the equity crowdfunding develops in a healthy and ordered way,we must establish a sound exit mechanism and a high-efficiency disputes mediation mechanism.