From: Shanghai Financial News
Compiler: http://www.fundcn.org

Companies Fund is a joint venture with the goal of investors, according to company law formed for the purpose of profit. invest in a particular object (such as securities, currencies) joint-stock investment company. Such funds through the issuance of shares to raise funds, is a corporate qualifications economic entity. Fund holders of both Fund investors are shareholders. Companies Fund was established, usually commissioned by the specific fund managers or investment consultants use of fund assets for investment.

Contract fund will be based on the trust deed and the establishment of the Fund, the General Fund management companies (clients) Fund custodian (trustee) and investors (beneficiaries) through tripartite contractual investment trust established. Contract funds between the parties to the tripartite existence of such a relationship : Trustor, in accordance with contractual use of the trust property investment, the Trustee in accordance with the lease responsible for the custody of the trust property, investors in accordance with the contractual investment income enjoy. Contract Fund to raise funds is the general fund beneficiary certificates issued or fund units, which is a PI, show investors in the ownership of the assets of the Fund, the sole ownership interests in investment allocation.

American companies for the fund Fund; China’s Hong Kong, Taiwan and Japan are lease Fund.

Fund companies and contractual fund are the main difference between:

1, the legal basis for the different companies Fund established on the basis of the Company Law and Contract Fund established in accordance with the contracts, Trust Law is the legal basis for the establishment.

2, the property fund legal personality different companies Fund with legal personality, and the fund has no contractual legal personality.

3, the issue of certificates of different companies Fund issued shares, leases issued by the Fund is the beneficiary certificates (Units).

4, the investor to the different corporate fund investors as part of the company’s shareholders, to the company’s major decisions express their views, they can participate in the general meeting of shareholders to exercise the rights of shareholders. Contract Fund investors to buy beneficiary certificates, which became the subject of a contractual relationship, that is the beneficiary, the funds were used had no say.

5, the use of fund assets according to different corporate fund companies based on the regulations of use of the fund assets, and the Fund pursuant to the lease-lease to use the assets of the Fund.

6, various financing channels for fund-based company with legal personality, in certain circumstances, it can be borrowed from banks. Contract fund-not to bank borrowings.

7, funds operating mode for different companies like General Fund shares in the company, Unless the provisions of the Companies Act pursuant to the bankruptcy, liquidation phase, companies generally have permanent; Fund-lease basis contracts to establish, operate, lease expiration, termination of the corresponding operation of the Fund.

Copyright Fund China 2009.

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