On The Practical Operation Of Venture Capital Exit Mechanism

Private equity(PE) and venture capital(VC) are two typical methods that play an important role in our country. Exit mechanism is directly related to the implementation of the investment purpose, exit for effectiveness, investment agreement problem argued in the theoretical circle and judicial practice. This paper briefly analyzes the four main exit ways of venture capital, especially focus on two special exit ways which are share repurchase bet agreement, red chip architecture dismantled overseas investment exit problems.The frist part: overview of venture capital, introduces the definition of VC, PE, operation process.The second part: venture capital general exit mechanism, briefly introduces four general exit ways: initial public offerings, mergers and acquisitions, repurchase, liquidation, and analyzes the exit through the repurchase of the legitimacy of the problem.The third part: special exit mechanism: stock repurchase agreement. In view of the extensive use of the gambling agreement in the field of investment in our country, the legal effect of the stock repurchase agreement is analyzed in detail with 6 typical cases of judicial cases.Share transfer system in view of the small and medium-sized enterprises(hereinafter referred to as the "new three board") of particularity and universality of listed companies signed the agreement on bet, analyzing the new three board ’s tolerance and restrictions of share repurchase bet agreement。The fourth part: The second special exit: red chip architecture dismantled foreign investors to exit. This part analyzes the red-chip architecture dismantled the way foreign investors to exit, equity buy-back pricing and tax arrangement problem in detail, Combining with storm case of science and technology. Based on typical case study,we find that judicial practice at present in our country has negative position on the target company share repurchase bet agreement between basic in our country. But share repurchase between the investors and the target company shareholders bet agreement between legitimacy won the general recognition of the people’s court and the arbitration agency. But the people’s court has negative point on for the bet on the agreement on the basic of as agreed in the fixed income to repurchase equity denialc, only individual arbitration case breakthrough the legitimacy of the approval of the agreement.This paper prompts the exit withholding income tax, foreign exchange registration of overseas investment through the analysis of storm outside the red-chip architecture demolition case of science and technology through PE overseas financing platform to repurchase equity exit mode.This paper collectes 87 cases involving bet against the agreement which can be publicly getten, and selects six typical litigation and arbitration cases.ane than puts forward suggestion on the design of bet agreement on the basis of summarizing the referee case share repurchase bet agreement. In this paper, another innovative attempt is in the 37 new three board bet against the agreement of listed companies,.with data analysis, it is concluded that the new three board ’s tolerance and restrictions of share repurchase bet agreement。...