Jurisprudential Inquiry Of Valuation Adjustment Mechanism

Based on the Price Adjustment Mechanism in the West, the Valuation Adjustment Mechanism is a middle agreement about balancing the company uncertainty income. It comes from the company. However the distribution of it between the investors and companies is vastly difficult. So an evaluation mechanism is established in the agreement and many specific regulations are also established. NO matter who violates the regulations, he can not obtain the other can. Because of the Valuation Adjustment Mechanism's gambling characteristics and appearance in the PE invest ion frequently, it is misunderstanded as the gambling agreement in China.In China, VAM in the private equity is different from the West. It has more colors gambling of own and changes the two-way game to the one-way game in west. The "performance" code and the "non-performance" code are used as the main content, the BAM has a simple form, but its requirements are more demanding. Since the TAIZI Milk was trapped in dangerous way because of VAM, on the one hand, many VAM are facing the same Prince of lose-lose situation of TAIZI milk. On the other hand, the desire of funds led many entrepreneurs to quenching thirst with poison harsh on investors readily accepted the VAM. As a result, the legal practitioners in the capital and the controversy stirred up strong:total repudiation of the VAM and call for the legalization of VAM.Therefore, go against the originally clear source, from law analyses to the VAM to explore their legal basis in our country and the law applicable to its current legal framework in China to seek legal foundation this paper is include:Chapterâ… :Current classical cases of the VAM on China's capital market and the results analysis about them. the chapter by classic cases different results of Mengniu, Yongle, Taizi milk, Xugong croup's indicate that the current manifestation on the China's capital marketChapterâ…¡:Origin of VAM. It shows the nature of the VAM the manifestation in the list of the financing terms of the contract forms by case analysis.to shows that our agreement on the basic meaning of VAM and in the application of our current performanChapterâ…¢:By analyzing the Legal relations and legal property of the VAM to indicte the legal nature and formation. to expect the relationship between the right and the legalization of gambling agreements and disputes the Legal RemedyChapterâ…£:Giving a specific analysis to four classic case of the success or failure,and a complete set of measures to avoid risks for enterprise financing and private equity investment agreement signed on VAM in the end...