Legislation Defects And Improvements Of Chinese Private-offered Funds

With the rapid development and the growth of size of China's private equity funds, private equity funds like a double-edged sword for China's capital markets and the real economy, its influence has become increasingly prominent. Because, as the lack of subject legal status of China's private equity fund, internal control mechanism is not perfect, it will inflict harm on the investor's interest. Also, because the lack of supervision, it is easy to breed corruption, money laundering and other criminal activities. SFC has been hit the behavior of private equity investment funds to manipulate capital markets, recently it also concerned about the proposed listed companies private equity investment funds on the transfer of benefits, which indicated countries have realized that private equity funds need regulation. However, in the field of law, private equity fund legislation is a relatively cutting-edge topic, and the research on legislative theory is rare. For this reason, this article intends to explain it from the following four parts.The first part introduces the basic theory of private equity funds. It analyses the concept and characteristics of private equity funds, and analyzes the parties'legal relationship of private equity funds, and strive to grasp the nature of legal relationship on private equity funds, to lay the foundation for the legislation perfect.The second part analyzes abroad private equity fund about the present situation of the legislation. It highlights the U. S. and the EU 2010 regulatory bill, indicating that the future of the world of private equity fund legislation trend, and the key reference point for China's private equity fund legislation.The third part analyzes the present relevant laws and regulations of the private equity fund in China, and describes legislation in the status of our private equity funds. points out the existing legislation defects.The fourth section presents the framework proposals of the private equity fund legislation and I put forward more detailed legislative advocate:The first part is in the establishment of private equity fund. This paper proposes different from the academic point of view, that the private equity fund sponsors and managers should be different in legislation, and set the relative different access conditions, rather than the current approach to confuse the two. Meanwhile, as to whether a natural person can be a sponsor of private equity fund,. I also made different from the academic point of view, and shows a reason for a natural person can serve as a sponsor of private equity fund.Second, it's about the private equity fund raised. This paper presents my opinion on the qualifications of investors, with particular emphasis on the issue that investors transfer their share in the process private equity funds are existent.The third part is about the organization form of private equity fund. This article puts forward legislative proposals through different organization forms of private equity funds. And in particularⅠput forward legislative proposals on whether companies can be general partners of limited partnership type private equity fund.Fourth, in the operation of the private equity fund, I propose the legislative proposals how to effectively incent and restrain it to protect the interests of the parties.Fifth, in the regulatory aspects of private equity funds, I put forward the principle views.