The purpose of private equity investors to buy fund shares is to hope to get corresponding income after the expiration of the term stipulated in the fund contract. The manager shall, in accordance with the contract, ensure that investors can withdraw from the fund in time. However, in practice, due to investment failure and other reasons, it is not uncommon for private equity funds to fail to withdraw in time after expiration. In order to protect their own interests, investors will generally sue the court and ask the private equity fund manager to return the investment principal and corresponding interest. The failure of private equity funds to withdraw in time after the expiration will not only have a serious impact on the reputation of managers, but also face a series of legal risks. Because most private funds exist in the form of limited partnership, the private funds discussed in this paper refer to the private funds in the form of limited partnership.
Article 16 of the "Guidelines for Private Investment Fund Contracts No.3" issued by the fund industry association stipulates that the partnership agreement shall specify the relevant matters concerning the termination and dissolution of the partnership, which may specifically include the conditions for the termination and dissolution of the partnership, liquidation procedures, liquidators and selection conditions, liquidation and distribution, etc. Private equity funds mostly exist in the form of limited partnerships, and the provisions on dissolution and liquidation in such private equity investment fund contracts cannot violate the relevant provisions of the Partnership Law. According to the provisions of Articles 85 and 86 of the Partnership Enterprise Law, a partnership enterprise shall be dissolved after the expiration of the term and liquidated by the liquidator; The liquidator shall be all partners. Within/0/5 days after the cause of dissolution occurs, with the consent of more than half of all partners, more than one partner or a third person may be appointed as liquidator. Investors of private equity funds can entrust managers as fund liquidators, and private equity fund contracts will generally stipulate that the fund managers will act as liquidators and be responsible for fund liquidation. After the expiration of the fund, the fund manager has the obligation to liquidate and should start the liquidation work in time within the time limit stipulated in the contract. During the liquidation period, no investment work unrelated to liquidation shall be engaged.