Legal Dilemmas And Solutions Of Establishing Family Trust By Listed Company Stocks

As private wealth grows,there is an increasing demand for inheritance of family wealth.How to effectively protect and inherit the equity has become a problem to be solved.Family trust has won the favor of the Chinese high net worth individuals in recent years because family trust has great flexibility and is the effective means to realize the above purposes.However,due to the unidentified ownership of trust property,the trust is facing a big dilemma in the process of taking root in China.The establishment of family trust by listed company stocks will inevitably encounter some obstacles from the regulatory level.Based on the above considerations,the author believes it is necessary to base on a fictional case,focusing on the legal difficulties faced by listed companies to establish family trust,so as to provide the corresponding suggestions on the development path to improve the establishment of family trusts by listed company stocks.This thesis mainly launches from three chapters.Chapter one mainly elaborates the origin,development,concept and characteristics of family trust,and how to establish the family trusts by listed company stocks.This chapter also introduces the significance of the establishment of family trusts by listed company stocks.Chapter two is based on the study of a fictional case.It introduces the main existing problems faced by the listed company when establishing family trust inChina.First of all,it mentions that the specification of the rights and obligations of the trust subject is not clear.And secondly,it introduces the problems caused by the absence of relevant trust systems,such as the lack of equity trust registration and tax system.Then it analyzes the restrictions of transfer of ownership of listed companies in the process of establishment of family trust,including the restrictions on the transfer of stocks during the restricted period and the restrictions on large shareholder's reduction of holding stocks.Changes in actual controller,tender offer,the ways of registration of the stock transfer and persons acting in concert should be considered as well.The third chapter illustrates the research on solutions to the above problems.First of all,it puts forward some suggestions on the establishment of the legal system of trustee and some suggestions on clarifying the effect of trust registration and establishing a unified trust registration institution.To improve trust tax system,the author believes it is necessary to define the subject and timing and the reduction of taxes.At last,it puts forward the exploration path for the obstacles of transfer of stocks under supervision.