Chinese Securities Investment Fund Management Structure

From the contractual angle of view, investment fund is a set of contract between the holder and the manager, but the contract is incomplete, and this brings the residual claimancy and residual rights of control. The governance of fund indicates the structure of these rights. The efficiency governance structure requests corresponding of the two rights. Because the holders are charged the residual claimancy constitutionally, they should take the reins of residual control right . However, the governance of fund needs the third party to exert the ward rights of the contract because of the distraction of the holders. The election and superintendence to the should third party should be given to the holders ultimately.The corporation fund and contract fund are two governance fund modes. Corporation fund are based on the recessive contractual relations and apparent company relations, so the independency director as the third party has more residual control rights. While contract fund are based on the apparent contractual relations, and the trustee has lesser residual control rights. So the former has the superiority on the governance efficiency, and the fact that many countries introduce it gives the prove. However, contract fund which perfects the system of trustee has also the adaptabilities.The disfigurement of fund governance in our country is that the election and superintendence to the third party seized by the manager, and the holders do not have the realism approach to convoke the holder convention. So the direction to optimize it is to adjust the deploy of the election and superintendence to the third party , and introduce the vote substitute system , push the corporation fund and constitute the independency director system which accords the situation of our country.