Legal Risk Study On Valuation Adjustment Mechanism

Valuation Adjustment Mechanism as "exotic", after the introduction of our country, play an important role in corporate finance and mergers and acquisitions, especially in the provision of convenient conditions for SME financing. Although the Valuation Adjustment Mechanism in reality been widely used, but its legal nature and effectiveness, our laws have not been made clear, thereby generating a lot of disputes, such as China's "first Valuation Adjustment Mechanism case "of Gansu Shi Heng company and the investment company Admiralty Valuation Adjustment Mechanism case, which lasted four years, although the final gamble by the Supreme People's Court of final Appeal ruling, to determine the shareholders and does not violate the prohibition law, confirmation is required to fulfill an Valuation Adjustment Mechanism, and the decision in that case after case to have some guidance, but the discussion of the case but the verdict has not stopped. Since then, an Valuation Adjustment Mechanism has caused more legal, financial and business concerns. Clear concept and value of gambling agreement, in-depth analysis of the gambling agreement legal nature and effectiveness, reveals coordination paragraph on the basis of theory, risk analysis, and ultimately to the trend of judicial practice direction for improving legal provisions and regulatory legal risks provide reasonable recommendations.