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A Research Of Several Legal Issues On Foreign-invested Venture Capital Enterprises

Posted on:2009-06-05Degree:MasterType:Thesis
Country:ChinaCandidate:K Y YaoFull Text:PDF
GTID:2166360245958169Subject:Economic Law
Abstract/Summary:PDF Full Text Request
Foreign venture capital is a form of venture capital, whose capital is from outside legal or natural persons, it is an important part of foreign direct investment. The scale of foreign investment in China's venture capital investment is in the constantly expanding, it is closely related with a series legal system which the Chinese government promulgated to encourage the development of the foreign business investment in recent years apparently. At the same time, we also found that there are some problems with these legal systems, while in our country there is no high-level legislative which response to these issues, the academic study in this aspect is also seriously inadequate.Legal value is the soul of the law. This paper is starting with the value orientation of the legal system of foreign-invested venture capital enterprise, the basic legal values of foreign investment venture capital companies should be established for efficiency and order.On the issue of market access, the author believe that natural persons should be allowed to participate in foreign venture capital investment enterprises, so as to promote more private capital and other investors to participate in venture capital. The specific elements of the sponsor of the enterprise and the operators should to be on the audit. The selection criteria of venture capitalists should be established, to give a certain guidance to entrepreneurs and make the choice of a venture capitalists more rigorous and institutionalized.Venture capital can withdraw from the venture capital investment enterprises is the key to a continuous venture capital cycle. It is necessary to enhance the regulation of withdrawal of foreign venture capital market. Although China's legal system provides the ways to exit, including stock transfer, stock repurchase, the border listing inside and outside and clearing, the rules are very general and without operability. The author suggests that we should reference the legislative experience of developed countries and combine China's reality, to develop a standardized regulation of " Property Transactions Act", and establish an effective market supervision system of property rights trading; relax conditions of stake repurchase of entrepreneurship companies, regulate program system of share repurchase, and improves China's second board market, nurture venture companies list publicly in the territory board.Building and maintenance the legal system environment to encourage foreign capital's participation in venture capital is the most urgent task to accelerate the development of China's venture capital. The duplicate taxation problems will impact the enthusiasm of investors, thereby affecting the progress of China's high-tech industries. The duplicate taxation on foreign venture capital companies should be completely cancelled, it should be clear that only venture companies could be taxed, and to give preferential treatment in taxation to them. In addition, in the cause of the venture capital, the decision-making program has already decided the success or failure of the fate of the venture capital investment, so it is necessary to strengthen the supervision on the decision-making. The author proposes the following countermeasures: establish terms to constraints the venture capitalists; set up the Investment Committee and Risk Control Committee in day-to-day decision-making process, in order to strengthen supervision.
Keywords/Search Tags:Foreign investment, Venture capital investments, Market access, Capital withdrawal, Legal Regulation
PDF Full Text Request
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