On The Construction Of The Legal Systemof Private Equity Financing For SMEs

Small and medium sized enterprise is an important component of China’s economy. It plays an important role in the economic development, expansion of employment, enriching the material and cultural life.The financing difficulty is always the bottleneck for the healthy development of small and medium sized enterprise. How to innovate and broaden the financing channels for small and medium enterprise is the key to solve the small and medium-sized enterprise survival.The financing channels of small and medium-sized enterprise are varied. From any point of views, we can find the path and solution to the financing difficulty. This paper starts with the expanding direct financing channels for small and medium sized enterprise,from the perspective of private equity financing of small and medium enterprises,combined with the development of China’s private equity industry,analyses governance path of financing of small and medium sized enterprise,from the view of construction of legal system of small and medium enterprises private equity financing.This paper is divided into three parts, the introduction, the main text and the conclusion. The introduction briefly introduces the reasons of the financing status and financing difficulty of small and medium sized enterprise in our country, com pared with the small and medium-sized enterprises successfully make use of the private equity financing to solve the financing difficult in developed country,combined with the development status of China’s private equity industry, Proposes the establishment of the legal system of private equity funds in China to meet the financing needs of small and medium-sized enterprises.The article consists of three parts. The first part starts with the legislation of small and medium sized enterprise financing in China,points out the problems existing in the legislative system of small and medium-sized enterprises financing in China, through the collations of existing financing legislation, and proposes the establishment of China’s private equity fund to solve the small and medium enterprises financing difficulties. The second part is the reference of foreign legal system, on the bases of the simple introduction and analysis of the United States, Japan private equity investment fund legal development history,summarizes the significance of the foreign legal system to our country. The third part is the key part of the thesis, on the basis of the two parts, puts forward our small and medium-sized enterprise private equity financing legal system.The specific legal system includes private equity investment fund mode selection, legislative principles, legislative system,the construction of the exit platform for the private equity investment fund, which analyses and discusses from the improvement of the current private equity fund organization appropriate regulation equilibrium principle, safety and efficiency principle, the investor benefit protection mechanism, the system of qualified investors, information reporting obligations, multilevel equity exit platform construction and so on.