The Control Mechanism Of Contractual Securities Investment Fund Manager

The theory of contract of Securities Investment Fund Manager has always been taken seriously, but for the constraints of scattered points, only to go up from the surface to explore the deficiencies of the current legislation is likely to suffer distress. This article examines the the control mechanism of contractual Securities Investment Fund Manager to grasp the essence through two important issues:First,internal corporate governance structure of the fund management companies stretches from the inside to find main root cause of the funds departure from the relationship between managers and other funds participator in the interests, while the fund management company's internal structure is different from other companis. The only way is use the common law to seek the compensation.of in the principles of equity about trust and multi-ownership system.Second, starting from the principal-agent theory, We are in order to solve the basic problem that the client's interests are suffered in different degrees by misconduct of agents.though the agency relationship between the fund legal framework and the perspective of different stakeholders this article devote itself to explore game balance of the interests. We use the economic thinking from the perspective of law find how to make the appropriate constraints for the fund managers in the chain of the interest of the parties. Finally we can make the the remodeling of the legal relationship between fund parties. The fund manager's control mechanism can be transfered to changes and improvements of the legal fund relations so as to promote China's Securities Investment Fund industry.Except the introduction, the article is divided into three parts:The first part is about the fund manager's own sound system. the major is about fund management companies's internal governance structure optimization and improvement of inherent obligations,fund manager evaluation and the system for fund managers to further promote the self-construction. Among them, the key part is the fund management company to improve governance. Fund management companies in corporate governance is different from the ordinary shareholders in the aspect of directors, supervisors and senior executives of the relationship. But the main interest of fund shares from a third party holders of corporate governance in a point of view, the new model is to improve its corporate governance to protect the stability of the legal relationship Fund, in order to achieve a higher goal of corporate governance-the unity of.shareholder's interests and the interests of fund investors. The second part is the complete legal relationship within the Fund, divided into three sections. The part Illustrates the relationship between the respective legal framework for the improvement fund, the fund custodian and fund managers. Among them, the key part lands in the mechanism of how the fund holders control the fund managers.According to the theories, the legal fund relationship is divided into the separation and the non-separation. The legal relationship of the Fund is a statutory unity in the tripartite relationship as a trust relationship with two trustees to complete the trust affairs for the client at the same time. However, this design just relys on the tradition of the agency theory of civil law, a contractual relationship and tort protection. This section focuses on China's national conditions to suit the application and improvement of traditional theory to build a solid chain of harmonious interests of the parties.Fund trustees and fund holder's ability to control fund manager in China is relatively weak. this section focuses on how the individual and the NPC restrict fund manager, while procedural law as well as the operational details guarantee fund holders in the trust relationship effectively restricting the trustee on behalf of the principal financial behavior.The third part is about the fund custodian's complete responsibility system, mainly through the first two points about how to restrict fund managers, which makes distribution of the corresponding system of fund. The main contents include administrative responsibility, civil liability, criminal liability..