Abstract

Laws and regulations are the foundation of venture capital fund's cyclical operation. The Corporate Law and the Law on Partnership Enterprises affect venture capital fund mostly and directly among current laws and regulations. These two laws constrain venture capital fund by enacting classe of maximum investors, capital refund limitation, loss sharing restriction, voting mechanisms and investee liquidation though they have strongly promoted the normative operation of venture capital fund with standardizing capital contribution installment, non - currency capital contribution, corporate governance, voting rights allocation, negotiable capital contribution, identity converting between GP and LP, and non-currency refund. As a result, we propose two suggestions to the related governmental departments. Firstly, to propose the legislative to revise the laws and regulations. Secondly, to draw up a related guide for venture capital fund's cyclical operation.