Legal Issues Of The Limited Partnership Private Equity Funds

In2006, with the partnership enterprise law promulgated in China, the organizationform of limited partnership have independent legal status, the private equity enterprises oflimited partnership is like bamboo shoots after a spring rain have been established in China,greatly promote the development of Chinese private equity investment industry. Butbecause the relevant laws and regulations stipulates the organization form of limitedpartnership in principle, and no specific legal regulations of Limited Partnership PrivateEquity Fund, lack of operability in practice. Therefore, based on the private equity funds oflimited partnership as the research object, this paper expounds the legal characteristics, itslegislative situation and the development trend, and find the existing problems, proposesthe legal advice to perfect the legal definition of qualified investors, managementmechanism, the tax system, exit channels. In improving private equity fund operationability and promoting healthy development of Chinese private equity investment fund hasimportant theoretical value and practical significance.In addition to the introduction, this paper is divided into five parts:The first part, the theoretical basis about Limited Partnership Private Equity Fund,within the framework of the law on it were defined, a comprehensive introduction to itslegal characteristics, forms of organization and development trend. Through thecomparative analysis of three forms of organization, the author thinks that the LimitedPartnership Private Equity Fund is the most conducive to the development of China’sprivate equity fund industry.The second part, the main analysis of the legal environment of our limited partnershipprivate equity fund, from local legislation, the State Council regulations and legislation ofNational People’s Congress of the law three levels expounnds the present situation of legalnorms, then make a comprehensive evaluation about legal environment of our limitedpartnership private equity fund.The third part, through the analysis of the legal status of our limited partnershipprivate equity fund, and puts forward the existing problems, mainly including five aspects,the qualified investor legal definition is not clear, management mechanism and relativechaos, tax legal system is not perfect, the lack of flexible exit channels, supervision subjectis not clear.The fourth part, the America is the most perfect country in law and practice of limitedpartnership private equity fund, so this part focuses on America as an example, focused on the research of the perfect legal system,the rich tax incentive policy, a variety of exit andstrict supervision mechanism, are important reference to improve China’s legal system oflimited partnership private equity fund.The fifth part, according to the above found our limited partnership private equityfund problems and study the America legal system found, put forward proposals toimprove the legal system of our country. Mainly includes: from different point of view tomake clear the investor legal definition, perfect the related tax law system, establisheffective management mechanism, provide more choices of exit channel, clear theregulatory body.