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Study On The Legal Protection Of Private Equity Investors

Posted on:2013-09-30Degree:MasterType:Thesis
Country:ChinaCandidate:M Y ZhouFull Text:PDF
GTID:2256330395988732Subject:Economic Law
Abstract/Summary:PDF Full Text Request
With the rapid development of private equity investments in China, attracting a growingnumber of capital investors access to the private equity market. Although private equity returnon investment can bring high returns to investors, but also accompanied by higher risks, howto protect investors against the risks of attack, sustain confidence and good momentum in thedevelopment of the industry will become an important issue we have to. Risks of privateequity investors in the private equity investment itself, because on the one hand with a highdegree of information asymmetry, on the other hand is due to private equity investment inChina is still in its infancy, and perfecting the legal system, inadequate market. Althoughsome provisions on private equity investments in China, but these require legislative level isnot high, not perfect, have different provisions even contradict. This trying to will on privateequity investors of protection countermeasures put in a full of significance in the for research,from investors entered market Shi of qualification protection, to investment in the oforganization schema protection, then to dynamic of, and initiative more strong of investmenttools (is various specific of special right) of protection, completed has from entered market toinvestment process, from abstract of organization to specific of right tools of entire process.The text of this article is divided into four chapters.First chapter is this of theory part, first on private equity investment concept and basicstructure for describes, and combination status analysis investors in private equity investmentin the encountered of various risk, then focus analysis has caused risk of causes, both internalcauses, is private equity investment in the exists delegate agent relationship may raisedreverse select risk and moral risk, and has external causes, is legal and market of does notperfect.Chapter two by "qualified investors" introduction, construction of access protection forinvestors.“Qualified investors "of significance is risk tips and risk barrier, guarantee forprivate equity investment of investors are has is of risk distinguished and bear ability, by onUnited States and EU qualified investors provides of investigation, and and in China providesof comparison, made in China qualified investors used of standard single, provides contenthas does not reasonable of Department, shortcomings, and recommendations from perfectinvestors classification, and subjective and objective standard phase combination, and in property found Shang used dynamic standard, for improve.Chapter three through a limited partnership fund governance, building on theorganisation of the protection of investors. This chapter first discusses the need for theinternal governance of the Fund, and consider that the Fund’s governance structure is right,arrangements for investors and managers, on the Manager’s incentive, to avoid the risk ofasymmetric information. Then, by comparing several Fund organizational forms, analyze theadvantages to the limited partnership fund to protect investors, established the limitedpartnership for the path of the governance of the Fund. Then, my analysis of the currentproblems of the Fund on the basis of the limited partnership, put forward on the formation ofincentive and constraint Manager accordingly.Part four by private equity investment tool of choice, providing investors with specificsubstantive rights protected. This chapter first describes the concepts, advantages ofconvertible preferred stock, which is essentially a combination of a series of rights, providesmultiple priority rights for investors, to overcome information asymmetry risk, in our countryhave established the necessary. Then, concrete analysis of convertible preferred stock whichcontains some specific legal rights in China under the background of legal risks and approach.Finally, from legally established preferred stock, improving the share buy-back system, thedevelopment of special laws and other related legal advice.
Keywords/Search Tags:Private equity, Private equity investor protection, Informationasymmetry, Qualified investors, Limited Partnership Fund, Private-equity investmentinstruments
PDF Full Text Request
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