Venture Capital Organizations In The Form Of Legal Analysis

Since 1990s,the continuing economic development in the United States has drawn attention to other countries both the developed and developing ones in the world, especially the effect of the venture capital to the high-technology industry. Many countries such as United Kingdom, Germany and Japanese has taken some steps to imitated it, it has also becoming the focus of the legislature, the government agency and many scholars.This article emphasis on an important factor of the venture capital mechanism-venture capital organization. We must study seriously which business forms can make venture capital organisation running efficiency since it is one of the subject which run the venture capital, The selection of the business forms of venture capital organization is determined by the economic and law circumstance in the different countries. Based on native unique circumstance, everyone has adopted respective legislative model to regulate the venture capital organization. The studies about the foundation, development and decline of various business forms of organization in different countries will help us to learn the different requirements which the venture capital organizations run in the macroscopical and microcosmic environment. We can use the experience for reference.The article is divided into six chapters.Chapter one analyses the role of the venture capital organization in the manner of economy and law. In order to investigate; the business forms, it is necessary to review the orientation of the organization. Although there isn't an uniform definition of the venture capital in the industry, we can define our native venture capital including five characteristics: the main investing object is high-techno logy industry; since the high risk of the object, the manner which the venture capital adopted is mainly share investment in order to conciliate the high risk and high proceeds; the venture capital ought to invest in a fixed period and could supply value-added service.Different from other financial institutions, the venture capital organization is not only the channels of the investor and the; company invested, but also solve the problem in the process of financing .led by the uncertainty and asymmetry of the enterprise. In selecting the business form, the venture capital organization must choose the form which has the minimum cost to the investor, namely the sum of hereinafter two costs is minimum: the cost of the transaction of the investor and entrepreneur and the cost which the investor possess the organization. These costs is combined with many laws such as tax law, business organization law and security law and the business form will also supply the organization simplified and flexible structure. Some countries has adopted the particularlegislation and others adopted the model which amend the existing legislation combined the characteristic of venture capital .According to our country's policy, the business forms of venture capital organizations will mainly include venture capital investment fund and venture capital invest company .The article will discuss the two forms.Chapter two describes the legislative principle of venture capital investment fund which is the basis of the legislation of business form of venture capital investment fund-Some countries has adopted the particular legislation while others adopted the exemption model which based on the securities investment fund mainly in the United States. In our country, improving the venture capital investment fund will benefit the reformation of the financing system and the regulation of venture capital subject. When considering the corresponding legislation, we should adopt the particular model, namely based on the investment fund law, specifically setting down the law about the venture capital investment fund and supplemented by other laws. The particular law will stipulate the investment direction, administration, the manner of issuance and qualification of the investor and so on .Chapter three and four respectively stipulates two t...