Study On The Legal System Of Investment Preferred Shares Of Private Equity Funds In China

As the representative of the class,the preferred stock has a high degree of flexibility,and its characteristics of profit and the priority distribution right of surplus property are adapted to the needs of private equity funds and start-ups and technology enterprises to match the risk and income.The Guidance of the State Council on the Piloting of Preferred Stocks issued in 2013(Agency "2013" No.46)and the "Pilot Management Measures for Preferred Stocks" issued in 2014(SFC Order No.97)are signs that China’s priority stocks business has entered a new stage.It provides the basis for the development of the private equity fund’s investment priority stock business,and the system of private equity fund investment preferred stock is formed.Priority shares pilot work has been carried out for many years,in the course of the pilot work,private equity funds developed rapidly,the booming investment and financing needs make itself attractive to each other private equity funds and preferred stocks combined more and more closely.But the continuous rich business practice also makes in the beginning of the business can not be found,preferred shares issue disenfranchised subject,the rights set up in general,private equity fund exit problems.Private equity funds and enterprises through investment practice,the existing system of the existing problems,put forward a sound demand,through china’s current legal provisions related to private equity funds and preferred stocks,as well as the united States similar provisions of the observation,on the basis of the existing system,to encourage autonomy,promote investment transactions as the principle,Based on the actual situation of our country,the existing regulations are adjusted appropriately,with a view to exerting the flexibility of preferred stocks,so that the different needs of private equity funds and enterprises can be met.This paper is divided into five parts,through the analysis of the current situation of the system,market demand to find problems,based on domestic practical experience and domestic and foreign laws,to find solutions,with a view to private equity funds investment preferred stock system development recommendations for reference.