ABSTRACT
This conclusion presents some closing thoughts on the concepts covered in the preceding chapters of this book. The book explores the legal solution to the agency problems in the life cycle of the private equity investment in China from a cross-jurisdictional perspective. It explores that the agency problems generated from the separation of ownership and control widely exist in different business organizations. The transition mechanism of the limited/unlimited liabilities of limited partners (LP) in the circumstance where the LPs participate in the management of the partnership enterprise effectively mitigates the risk of unprofessional decision-making and the carried interests as incentive mechanism properly align the interests of general partners and LPs. Based on the analysis of the problems regarding investor protection in practices of China’s limited partnerships, trusts and private equity-held corporations, there is no doubt that the state’s influence on the future reforms for China’s private equity legal system will also be essential.
