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On The Balance Of Both Partners' Interest In Limited Partnership

Posted on:2012-08-27Degree:MasterType:Thesis
Country:ChinaCandidate:K XinFull Text:PDF
GTID:2166330338996771Subject:Civil and Commercial Law
Abstract/Summary:PDF Full Text Request
Limited partnership originated from Continent of Europe in 15th century, whose predecessor was "Commenda" contract. China's "Partnership Enterprise Law" which was newly revised in 2006 officially went into effect on June 1st in 2007. Since then, limited partnership system has been formally enshrined in Chinese laws. As the optimal combination of money investment and knowledge investment, limited partnership obtains advantages with which other forms are not unparalleled, such as tax preference, clarity of right and responsibility, high efficiency of professional management and clear incentive mechanism and also it is the best operation pattern for venture capital, private offered fund and small and medium technology enterprises, which is the main organizational form for PE funds in the western countries. In the mean time of ascertaining limited partnership system, China has also exposed some problems in practice, which in turn causes general partners and limited partners'rights and obligations to lose balance in limited partnership, so the author tries to find ways to balance their interests through analysis on reasons and performance of both partners'interest unbalance at different aspects.The text of this article is divided into three sections: The first section mainly introduces limited partnership,increding the brife concept of limited partnership , distinction for some related confusing concepts and legal status of each partner in limited partnership ect. The second section illustrates the design for balacing each partner's interest through showing the partners'interest game , rights and obligations in limited partnership enterprise on the representative of investment, aiming to show the author's idea of what's the balance of each partner's interset ought to be.The third section shows reasons and performance of partners'interest unbalance in limited partnership to the readers from legislation aspect and appropriately elaborates by means of current popular and representative investment form of limited partnership (such as private equity fund). The last section mainly illustrates the author's advice on partners'interest balance in limited partnership from legislation aspects. The ultimate writing purpose of this article is to depart from actual conditions of the current Chinese situation, to consummate the limited partnership system in China through appropriate references on foreign successful experience, to balance two partners'unbalanced interest relationship in some cases and also hope to promote the early promulgation of Chinese sole "Limited Partnership Law".
Keywords/Search Tags:Limited Partnership, Limited Partner, General Partner, Right and Obligation, Interest Balance
PDF Full Text Request
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