The Legislation Study On Private Investment Company In China

Now there is a kind of investment vehicle that is called "private investment company", influencing our nation's security market strongly. The NPC is also planning to regulate private investment company in the drafting investment fund Act. This thesis studies the legislation issues of private investment company. These constitute Chapter 1.In Chapter 2, the author defines the "private investment company" as "a collective investment vehicle which privately offers its securities to sophisticated investors and invests in securities mainly with great risks." The private investment company is different from others, such as registered investment company, etc. In Chapter 3, the author analyses the necessity of identifying the private investment company in legislation. The recognition of private investment company reflects the respect of the public rights to the sophisticated persons by the state. Especially, at present, there are lots of quasi-private-investment-companies in china, which are potential threat to the investors and the efficiency of market. The most important legislation issue is how to identify the private investment company. In Chapter 4 and Chapter 5, the author analyses these legal standards from both the restrictions on quantity and quality of the investors and the requirements of private offering.The other legislation issue of private investment company is whether we need extra regulations for the identified private investment company in China and whether we can make some guidance in order to reduce bargaining cost? In Chapter 6, the author discusses the legal arrangements of private investment companies, such as agency of undisclosed principal, trust, corporation, limited partnership, etc. The author believes that limited partnership is the fittest for private investment company. In Chapter 7, the author discusses some fundamental regulations for private investment company such as the deposit of fund, the restricts of investment, the manager's reports to the investors, the closed period of private investment company, the manager's duty of care and diligence. In Chapter 8, the author discusses the supervision of private investment company, with emphasis on the threshold of managers and the disclosure of some private investment companies to the public.In Chapter 9, the author summarizes the ideas in regulating private investment company and proposes the idiographic article in Investment Company Act.The thesis mainly adopts the comparative and historical methodology.