Research On The Legal System Of Investor Protection In Equity-based Crowdfunding

Today,with the rapid development of the Internet,the equity-based crowdfunding mode emerges as The Times demand,which has also blossomed in China.However,new problems have emerged in the tortuous development process,and the development of equity-based crowdfunding in China has also experienced twists and turns.It is necessary for China to establish a legal system that conforms to the characteristics of the equity-based crowdfunding model and China’s basic national conditions.The legal system is adopted to guarantee the sound development of equity-based crowdfunding and protect the legitimate rights and interests of equity-based crowdfunding investors.,mountain,can offend jade,our country in building a stake in the raise system protect mode,not only need to consider equity the raise pattern related development status in our country,our country’s basic national conditions,also should draw lessons from outside the advanced experience of America,Britain,Australia and other countries of the related system,and the relevant system,experience with selective,local considerations.The first problem is legality.Equity-based crowdfunding was introduced into China in 2011,and there was no clear legal provision during this period.The legality issue was not solved until October 2016.The implementation plan for the special rectification work of the risk of stock crowdfunding issued by 15 departments including CSRC gives the legitimacy to equity-based crowdfunding,so that the equity-based crowdfunding system can be adjusted by relevant laws and protected by relevant laws.In equity-based crowdfunding,investors are in a weak position,so it is necessary to protect them.Equity-based crowdfunding is an emerging financing method,which can fully absorb the idle funds in the society and enable the idle funds in the society to operate efficiently.However,due to the unsound current legal system,equity-based crowdfunding investors bear high risks,including the risk of fraud,the risk of fund custody,the risk of disclosure of private information,and the risk of capital withdrawal barriers.The problems in the protection of the rights of equity-based crowdfunding investors in China are as follows: the shareholder rights of equity-based crowdfunding investors cannot be effectively guaranteed,the management system of equity-based crowdfunding platform is not perfect,the investors have the behavior of blind investment,and there is no perfect fund custody system to guarantee the capital security of their investors.When the dispute occurs,there is no perfect dispute resolution mechanism.Investors’ exit mechanism is not sound.Therefore,the relevant systems outside the region are studied,and the localization of transplantation is considered in combination with China’s national conditions.Finally,some Suggestions are put forward to construct the legal system of investor protection of equity-based crowdfunding in China: perfect the obligations of equity-based crowdfunding platform,guarantee the rights of shareholders of its investors,and focus on the right to know and vote of shareholders.Establish the cooling-off period system to protect investors who invest blindly,establish the fund custody system to protect investors’ fund security,Commercial Banks and well-qualified third-party institutions are used as fund custodian to establish diversified dispute resolution mechanism of equity-based crowdfunding,which is divided into the establishment of special investor protection fund,the improvement of litigation dispute resolution mechanism and dispute complaint resolution mechanism,and the establishment of investors’ return on capital and profit withdrawal mechanism.