Legal Analysis On Equity Pledge

Equity pledge,as a kind of right pledge system,plays a big role in solving the problems of shortage of funds of shareholder,acknowledged by national legislation.Also encouraged by legislation in our country.But the pledge contract with the original company is prohibited by our "Company law".It reads that : "the company may not accept its own shares as the subject matter of a pledge".This slightly "capricious" rules have been unable to match the requirement of an increasingly open financial market,also is unable to make the company make full use of the assets to expand production and business operation.Therefore,only guarantee the company’s assets in the static security of equity issues goes far to the purpose organizing production elements,integrating productivity to accelerate to promote the development of the economy,so does the purpose of profitability.Hidden behind the equity of the company,therefore,accelerate blood circulation,is the task we legal person have to face up to.So to perfect equity guarantee from the system,strengthen corporate financing,maintain convenience of market transactions,and accelerate the capital cycle is our unavoidable mission.But at present,relevant system is hard to match the market’s captious eye,such as banning the company equity guarantee lead to cannot give full play to the financing function,the guarantor cannot recover from the other guarantors after affording responsibility also makes the guarantor afraid to set up the guarantee.Therefore,it is necessary to re-examine the existing rules,find out its deficiency in theory and practice.Hence we got obligations to draw lessons from foreign successful experience related.Establish a system of company accepting its equity to be pledged as early as possible.And properly solve the variations of related issues,to guarantee the market steady progress.This article includes four chapters divided into two parts.The first part is the first chapter,chapter from the Tuoguan and Hanzhan companys’ equity guarantee dispute,lead to discussion and summarized.The second part is to the first paragraph in the interpretation of the problem.Including the second,third and fourth chapter.The second chapter discussed the rationality of the rules of the company to accept its equity pledge.it is concluded that the company can also accept its equity pledge,but need appropriate rules to regularize.The third chapter is a description of the establishing of pledge of equity.The fourth chapter is a description to the right relief of the equity pledger.The author concluded that they can recover from each other,and shallowly discussed the scope of the recovering.