Lakeside Partners System Legal Research

In the context of the era of knowledge economy in the rise of human capital and the modern companies with separate powers,equity financing are inseparable from the two main themes of human capital and corporate governance.The former,as the status of intellectual capital has increased,has become an active economic resource,and the importance of human resources has also been highlighted.Among them,the company’s founders are the most prominent.They are the decision makers of the company’s major strategic issues,and the special human capital investors who drive the growth of the company.In the latter case,modern companies with separate powers need to continue to raise funds during the process of growth and expansion,so the founder’s equity may be diluted repeatedly,so that the founder may become a minority shareholder when the company can go public.According to this,how the founder can maintain the control of the company and the financing of the company’s equity in the company where the two powers are separated and the equity is continuously diluted is a difficult problem of corporate governance.The Lakeside partner system is a bold practice for this.It adopts a new contractual arrangement and system design to deal with the subtle changes between knowledge and capital at both ends of the balance,to conduct corporate governance and maintain control.The logic is to maintain the company’s control in the process of corporate financing,on the other hand,to affirm the founder’s value and protect the interests of the founders.At the same time,lakeside partner system has also suffered from many criticisms.This paper mainly addresses how to apply new contractual arrangements and institutional design to stimulate the creativity and value of intellectual capital,and to combine human capital and financial capital as a corporate governance problem.