Legal Research On Corporate Fund

As the development of capital market and securities market, securities investment funds as an investment, investment tools is also obtained rapid development in China. Due to historical and practical, and other factors, there is only contractual fund in China, but the corporate fund is the most popular securities fund in the world. Now, author just introduce the corporate fund system for reference.The thesis includes five chapters.The first chapter is about the general overview of securities investment funds. It includs two sections. Section I describes the different views on a clear concept of securities investment fund. Section II will be the classification of Securities Investment Fund. In accordance with the different forms of organization Securities investment funds can be divided into corporate funds and contract funds; In accordance with the redemption of fund shares, Securities investment funds can be divided into open-end funds and closed-end funds. By the comparison of different Securities investment funds lay the foundation for the discussion below.The second chapter describes the legal relationship of the corporate Fund. This chapter is divided into three sections. Section I analysis the nature of corporate fund. corporate fund is a kind of investment fund, not a kind of company. Section II describes the parties of the corporate fund and their rights and obligations. There are four main parties in the corporate fund, such as fund investors, fund corporate, fund managers and fund trustees. The four parties connect to each other through mutual legal relationship. The first legal relationship is between investors and fund corporate, which base on shareholders and company relationship. The second legal relationship is among fund companies, fund managers and fund trustees, which base on trust relationship. Fund corporation only exits in corporate funds, which is essential for the government of fund.The third chapter narrates the development of corporate funds in different country. There are four sections of this chapter. Section I is to describe the development of corporate fund in the USA and the characteristics of the corporate funds, the independent director system. Section II introduces the development of British corporate fund and the character of the legal system, additional Board of Directors. Section III describes the development of Japanese corporate fund and characteristics of the legal system, the system supervisor. Section IV compare the legal of the corporate fund in different countries, we find that each corporate fund all strengthen the internal governance to protect investors Interests. Independent director system of the United States, the additional director of the British system, and Japan's supervisor system play an important role in the protection of investors. Based on the comparison of legislative modes of different nations, Independent director system is more suitable for the design of China's corporate fund system.The fourth chapter focus on the necessity and feasibility of introduction of corporate fund. Section I introduce the development of corporate funds in China. Corporate funds did not exist in our securities investment history and current practice. Section II describes the necessity of introduction of fund corporate through four aspects. First, Due to the supervisory functions from the shareholders meeting, the board of directors and the fund trustee, the investors interests are effectively protected in corporate fund system Second, the fund manager fulfills self-motivation and self-restraint through the credit mechanism, which will not only help protect the interests of investors, but also to promote the healthy development of the fund management industry. Third, weak external supervision of the objective conditions demand the introduction of corporate funds. So the corporate funds in line with China's fund industry trends. Section III analyzes the feasibility of introduction of corporate fund through there aspects. First, analyze the legal environment for corporate funds. There are conflicts between corporate funds system and active law, but we can deal with them. Second, do economic analysis of corporate fund. Compare operating cost with benefit analysis, high cost is not the objective reason for introduction of the reasons. Third, analysis the social environment on which the corporate fund based. Clear property rights and capital market with good development shows that the introduction of corporate fund system is feasible.The fifth chapter is focus on the legislation for corporate fund. In the legislative model, there are great similarities between corporate funds and contract funds in legal relationship, so the uniform legislation mode is adopted. This chapter includes two sections. Section I clears the principle of legislation, including the principle of protecting the interests of investors, fund assets independence, limited liability principle, mutual restraint. The most core principle is the principle of protect the interests of investors. Section II introduces rules of different parties in the corporate fund. In particular, give a minute description of the fund corporate which is not exist in contract funds. The design of the corporate funds contains shareholders system and the board system, especially independent director system. Fund managers and fund trustees refer to the securities investment fund.Finally,it is the conclusion of this thesis ,which explain the corporate fund the introduction of the value and meaning. By the comparison of different corporate funds of different countries , combined with China's actual situation, find a suitable fund corporate fund system, which guide the practice of corporate funds and promote the development of China's fund industry and meet the international standards .