The Research Of Private Equity Fund Legislation And Its Improved

The development of Chinese private equity is the result of requirement for capital market. As the development of the enterprises, the family-members and the friends of initiators can not offer enough money for the enterprises. But,the enterprises are not powerful enough to loan money from the bank,or satisfy the requirement of the store market to get financial aid. At the this moment,the new financial program was born to resolve the problem——the Private Equity Fund (PE). As the cost of the finance,the enterprises offer part of equities to the investor. After the enterprises growing powerful ,the investors seil the equities to get the money back. After the movement of the fund,the enterprises obtain the money to development, the investors also receive the dividend of the redundant money,which is good for the two parties. So,PE is more and more popular for the middle and smell enterprises. A lot of enterprises collect money through PE. But in our country ,there are not any legislations to standardize PE,the investors are usually regulaed by the company law, the contract law, the trusteeship law and other laws. The lagging legislation of PE make the progrem is very dangerous. So it is very important for our country's legislation on PE.This paper sets four part on the legislation analysis of development of PE in China. In the first part,the paper introduct the connotation of PE and its characters. Then the paper distinguishes PE from public fund and the private securities fund. The development of PE are also narrated in this part. In the second part,the paper analysises the the company law, the contract law, the trusteeship law and other laws in the progrem of PE. At the third part of the paper,we compare the legal regulation of PE with other country .we can find some excellent experiences which have been accumulated by the foreign government. Based on the experience of mature foreign legislations and con1bining our own national sustiatlon,it makes a design for our country's legal regulated system of privately offered fund. In order to perfect the Chinese private equity funds regulation system, legislative suggestions are provided as follow: perfect relevant law concerning,the organization forms, investor's qualification and placement method of private equity funds as soon as possible,so that we can meet the challenge from international capital.