Studies On Legal System Of Venture Capital

As a special kind of investment in age of knowledge economy, venture capital is the main power to transforming science and technology into productivity. The development of technology & the transformation from technological fruit to productivity are the key factors to improve our general national power and competitive power. In our country, the development of venture capital are restricted by many kinds of limiting factors, the most important factor of them is lack of legal norms. The development of venture capital overseas shows that the governmental promotion is of necessity, and the best way to promoting its development is to legislate perfect law and norms.Since 1998, the venture capital has became one of the hot issue in the finance area in China, the research about the venture capital also developed rapidly. But there is few studies on it based on law and policy. Therefore, in the thesis, focusing on the law and policy in USA, we overall introduced and studied the legislation which to promote development of venture capital, law and policy about Limited Liability Partnership and legal norms in the exit mechanism. At the same time, we analyzed the actual situation of venture capital law and policy in China as well as the main shortage in them. Finally, proposals are made in this thesis on how to construct the system of law and policy of venture capital.Combining the results in these studies and the actual situation in China, some legal suggestion on protecting the wealth development of venture capital were given as follow: Firstly, we need to legislate Limited Liability Partnership Law and to improve the authority & universalism of this form which is most popular and proven to be very successful by the venture capital practices in USA.Secondly, to protecting the venture capital exiting from the high-tech enterprise successfully, we should amend the correlation course in corporation law in order that venture capital can exit through Initial Public Offering(IPO) ; and we also need to legislate M&A law.Finally, it is necessary to prefect the correlation law and policy, including legal norms about tax, intellectual property and gorvernmental acquisition etc.