However, unlike common joint-stock companies, it entrusts professional financial consultants or fund management companies for operation and management.
The organizational structure of a fund company is similar to that of a general joint-stock company, with a board of directors and a holders' meeting. Fund assets are owned by the company, and investors are shareholders of the company, taking risks and exercising their rights through the holders' meeting.
1) Corporate funds are joint-stock companies, but unlike ordinary joint-stock companies, their business is mainly securities investment trusts.
2) The capital of the company fund is the capital of the company as a legal person, that is, shares.
3) The structure of corporate funds is the same as that of general joint-stock companies, with a board of directors and a shareholders' meeting. Fund assets are owned by the company, and investors are the shareholders of the company and the ultimate holders of its assets. Shareholders exercise their rights at the shareholders' meeting according to the size of their shares.
4) According to the Articles of Association, the board of directors is responsible for the safe proliferation of fund assets. For the convenience of management, corporate funds often have fund managers and custodians. The fund manager is responsible for the investment management of fund assets, and the custodian is responsible for supervising the investment activities of the fund manager. The custodian may (not necessarily) open an account in the bank and register the fund assets in his own name. In order to clarify the rights and obligations of both parties, there is a contractual relationship between the fund company and the custodian, and the responsibilities of the custodian are listed in the custody agreement signed with the fund company. If there is a problem with the company's fund, investors have the right to directly ask the fund company.