Study On The Legal Problems Of Limited Partnership Private Equity Fund In China

In modern market economy environment,financing is very important for the survival and development of enterprises.As an efficient tool for direct investment,private equity fund has become an important part of China's financial market.Private equity fund has three forms—corporate,trust and limited partnership.Through comparing the three forms,the article concludes that private equity fund in the form of limited partnership has many advantages,such as flexibility in operation,high decision-making efficiency,incentive mechanism,lighter tax burden.Since the new Partnership Enterprise Law was revised in 2006,limited partnership obtained its legal status.These advantages courage a lot of investors to participate in limited partnership private equity fund.Limited partnership private equity fund has played an important role in promoting economic growth of China.However,the related laws and regulations still have many defections which hamper the development of limited partnership private equity fund.For example,limited partner has little legal feasible right to supervise general partner's activity on the implementation of partnership matters which increase the risk of general partner's illegal behavior.The article mainly focus on the study of laws which are concerned with private equity fund in the form of limited partnership.After the introducing of private equity fund's fundamental contents,the article introduces the development history of limited partnership private equity fund in China and concludes the disadvantages of Chinese current laws.Then the article introduces America and Britain's legislation of limited partnership private equity fund and analyses the features of their laws.Based on the previous introduction,the article concludes the experience which can be used for reference and makes an attempt to give some suggestions to better the legal system of limited partnership private equity fund.The suggestions include strengthening the supervision of fund manager,perfecting the system of accredited investor,adjusting tax policy and taking advantage of the industry association.