Study Of The Legal Issues Of Private Equity Funds In China

Private equity funds as innovative financial forms have a relatively short history. After a period of development, the limited liability partnership has become the main form of private equity fund. China has revised its Partnership Enterprise Law in 2006 and introduced the limited liability partnership as a whole new legal subject which will accelerate the private equity investment in China.This paper defines the concept of private equity funds first and reviewed the typical forms of private equity funds. Based on the comparison of the different types of private equity funds, the advantage of limited liability partnership is clarified. Then this paper focuses on the legal issues in China, and makes suggestions for improving the legislation on limited liability partnership and private equity investment. This paper is divided into five parts.Chapter One covers the concept and brief history of Private Equity Funds. After that, this paper compares the different types of Private Equity Funds to clarify the advantage of limited liability partnership. The next four chapters sub-state the legal issues in China's legal practice. Chapter Two discuss the private placement of the limited liability partnership by refer to the foreign legislation and private placement rules under china's corporate law and securities law. Chapter three summaries relevant legal system and make a legal reasoning to explain the significance of recognizing the limited partnership as the company's shareholders. Chapter Four describes the requirements being a partner of limited liability partnership including the issues on legal person and foreigner to be the partner. Chapter V focuses on the internal governance structure of limited liability partnership and discusses the Competence and liability of general partners and limited partners and makes the rational suggestions of my own.