Limited Partners’ Derivative Action: Problem and Prospects in the Private Equity Market of ChinaHong Kong Law Journal (2011)
The article inquires into the theories and operation of the limited partner’s derivative action in the context of China. The revised Partnership Enterprise Law provides a new remedy for the limited partner to pursue an action in its own name to safeguard the interests of the limited partnership. However, the law does not set forth a basic legal framework for bringing such an action. By identifying the special features of the private equity market of China and the deficiency of other remedial mechanisms to the limited partners, this article discusses the needs of the derivative action in the private equity limited partnerships. It also proposes special rules that are in line with the Chinese market condition.
- derivative action,
- limited partnership,
Citation InformationLin, Lin, Limited Partners’ Derivative Action: Problem and Prospects in the Private Equity Market of China (2011)Hong Kong Law Journal 41(2), pp 517-546