Shipping Industrial Investment Fund Legal Risk Control

Under the influence of financial crisis of 2008, medium and small shipping corporations face the risk of bankruptcy and financing difficulty. Under such circumstance, government inspires to extent financing ways by adopting shipping industrial investment fund, and the shipping industry attempts to adopt the way of shipping industrial investment fund to vitalize foundering shipping market. Take Tianjin Shipping Industrial Investment Fund, the first batch of shipping industrial investment fund which adopts limited partnership, moves with exploration and conflict. Tianjin Shipping Industrial Investment Fund makes some achievements and also exposes some legal risks. This thesis aims at revealing the possible risks under the present laws the shipping industrial investment fund faced and will be faced,and controlling these risks on legal level together with protecting and promoting shipping industrial investment fund, in order that realizing the healthy and orderly development of shipping industry.This article starts with the shipping industrial investment fund’s organizational structure and investment channels, and analyzes the relation between the organization and legal risk together with the relation between investment channels and legal risk.In the second and third chapter, this article states and analyzes the inner risks resulted by general partner and limited partner, together with the external risks resulted by equity investment and ship investment under the limited partnership structure. Theroot cause of the inner risk is the discordant between Partnership Law of the People’s Republic of China and shipping industrial investment fund, and which aggravates by the principal-agent relation. The root causes for external risk is the legal status that shipping industrial investment fund took part in equity investment and ship investment.This article introduces the theories of fund-governance and fiduciary duty,together with the rights protection and limitation of responsibility resulted from contract, to balance the interest conflict between the general partner with the limited partner; to urge the general partner do his best to avoid the investment risk; to protect the investment interest of the shipping industrial investment fund; and to decrease the responsibility in maximum, in order that achieving the investment goal and establish the legal risk prevention system suiting for limited partnership shipping industrial investment fund.