The Legal Effect And Practice Of Gambling Agreement

In recent years, with the continuous development of China’s capital markets, the legal term of Valuation adjustment mechanism (VAM) has frequently appeared in the capital operation of Chinese enterprises. This is also arousing a great deal of attention in the economics and legal community. The Valuation adjustment mechanism has become an important research topic of academia. Especially, Inner Mongolia Meng Niu Dairy (Group) Co., Ltd, is as a representative of the domestic enterprises in the successful use of Valuation adjustment mechanism, which make the enterprises have a rapid development. It also promotes more companies to use financing method of Valuation adjustment mechanism in the capital operation.The Valuation adjustment mechanism was derived from western price valuation adjustment mechanism. After it was introduced to China, with its popular Chinese translation-"gamble", so it had an emotional of "gamble". At the same time, there are a variety of reasons exist in reality. So the existing laws of the country do not have clear regulations on Valuation adjustment mechanism. As for the problems of the meaning and legal nature of Valuation adjustment mechanism, they do not make clear provisions either. Therefore, it leads to the uncertainty of the legal effect issue of Valuation adjustment mechanism. There is a big disputation on the legality problem of Valuation adjustment mechanism. Especially after the failure case of gambling in Yongle electrical appliances and Prince Milk Group, there is a disputation on total negation and legalization of Valuation adjustment mechanism.Therefore, based on the above situation, this article will explore the Valuation adjustment mechanism under the background of Chinese legal environment. This article includes:Introduction Part:it introduces the application of Valuation adjustment mechanism in classic case and analysis in the capital investment of Chinese enterprises the use. Through the introduction of the different gambling results in the cases of Inner Mongolia Meng Niu Dairy (Group) Co., Ltd, Prince Milk Group and XCMG (Xugong Construction Machinery Group), we introduce the related legal issues in the practical application of Valuation adjustment mechanism in our country.The first chapter analyzes the basic legal issues of gambling agreement. We introduce the meaning of Valuation adjustment mechanism and the applications in foreign countries. We also introduce the legal characteristics of it in the main body, purpose and effect.The second chapter analyzes the legal effect issues of the Valuation adjustment mechanism. We make an elaboration mainly from the legal attribute and the legitimacy of Valuation adjustment mechanism. The legal attribute issue of it is an emphasis discourse problem in this paper. In this part, we have a comparison between Valuation adjustment mechanism and stock options, chance contracts, conditional contracts. It analyzes the legal nature of Valuation adjustment mechanism.The third chapter analyzes the legal issues in the practical application of Valuation adjustment mechanism. In this part, we analyze the current situation of Valuation adjustment mechanism applications in China’s enterprise. We also analyze the main obstacles in the implementation process of China. Finally, we propose to improve it from the three aspects of Valuation adjustment mechanism terms, regulatory and legislative.