Legal Issues In The Operation Of Government Guidance Fund

Government guidance funds is a kind of market-oriented policy fund established by the Government, which is to support the development of venture capital enterprises, and guide social capital to enter the field of venture capital. This paper mainly studies some legal issues involved in the operation of the government guidance fund, which will be mainly described from the four-part expansion. The concept and role of government guidance fund will be described in the first part; the second part will be the legal status of government guidance fund, including the organizational form, shareholder relations and equity properties. The organizational form of government fund includes the corporate system and the limited partnership. However, in China’s economic and legal environment, the corporate system based on its mature system, and supporting facilities as well as more familiar to venture Capitalists, is more suitable for the soil of our government to guide the development of the fund. Many government guidance fund provides for government shareholders with priority liquidation rights in practice, and I believe that the government stake in these fund has the characteristics of preferred equity, so the guidance fund is also different from the general venture capital fund.; the third part is the legal issues involved in the government guidance fund operations, which includes the relationship between shareholders, fund managers and fund custodians, the protection of shareholders’rights, especially the government shareholders’and minority shareholders’, the obligations of fund managers, including trust obligations and reporting obligations; The fourth part is about the liability, liability for breach of contract in common venture capital funds and in government guidance fund are similar, the only difference is the government the government shareholder’s liability for breach of contract which is based on the particularity of the government status, the solution of this can not rely solely on traditional litigation. Therefore, the last part of this article will explore the responsibility of government shareholders in violation of the contribution obligation.