On The Valuation Of Equity Repo Judicial Proceedings

With the integration of global economy,corporations all over the world are facing opportunities and challenges.International competition and market liberalization had compelled corporate integration.While the corporations are undertaking these violent changes,we should pay attention to those minority shareholders who are not willing to undertaking such changes.In order to provide their shareholders an option for cash transactions instead of stock in the new entity,relieving them from forced membership,our company law entitled minority shareholders appraisal remedy.However,the company law have not state specifically,for example it did not state judicial assessment,which would setting barrier to the enforcement of the appraisal remedy.Determining the fair value is the core of the appraisal remedy,and it is the reason that west countries call it "appraisal remedy" or "dissenting remedy".Judicial assessment as a part of appraisal remedy is crucial. This article named "judicial assessment in the appraisal remedy suit",it introduced the judicial assessment in foreign countries,and suggested how we should bring in and establish judicial assessment in condition of our state situation.The first part of the article is about defining what is judicial assessment,after defining the meaning of the judicial assessment,it further analyzes what is the judicial assessment in appraisal remedy.After that according to lacking of the same institutional in our company law,the author discussed why we should draw lessons from judicial assessment from other countries.The second part of the article is very critical,it reviewed the origins of the appraisal remedy,make sure the purpose of the appraisal remedy is to protect the minority shareholders,the author further analyze the relationship between the purpose of the appraisal remedy and the principles of judicial assessment,the author then pointed out that courts determining fair value in appraisal proceedings be aware of the purposes served by the remedy.In the third part of the article,the author discuss how the court determine the fair value,the article analyzes firstly what does fair value mean,secondly how to determining the fair value,what should be taken account when determining fair value,lastly the author concluded how to determining fair value.The forth part is about procedure in judicial assessment,in using comparison demonstration method,the author give opinion to how we should build up our judicial assessment procedure in comparison with other countries' judicial assessment.