The Study Of Valuation Adjustment Mechanism Legal Problems

In recent years,with the continuous improvement of economic level,corporate financing channels become diversified,at this time VAM appeared.However,for this new type of contract content,current law does not clearly regulate its effectiveness.In judicial practice,the court often confused with the application of the provisions and how to use the law to regulate VAM.At the same time,the standard of the trial is not uniform and the result of uncertainty weakened the predictability of the law.In addition,the legal system is not complete,the current judicial practice in the face of a series of disputes are difficult to deal with perfectly.The Legislative Council issued a new version of the company law in 2014,compared with the past,we are pleased to see the legislative sector in the company's market transactions have made greater progress.It is worth looking forward to the market economy will become more and more vibrant,the application of the agreement will be more and more broad space for VAM.We need to spend more time in two areas:optimize the operating environment of the VAM and regulate the mode of operation between enterprises.We need the help of the judiciary,at the same time,investors need to be self financing management.I believe that the VAM will open a new world for corporate finance.This article use of case analysis,from the three parts of the legal problems of VAM.First of all,the author introduces a typical case of VAM in practice.Next,the main issues that need to be analyzed-the effectiveness of the problem is difficult to confirm,the application of the model is not mature.The first part is to introduce the concept of the VAM,the source and the specific characteristics of the VAM are introduced.After explaining the basic concept of VAM,further explain the root causes and institutional value of VAM.At the same time,the author will start from the three elements of the legal relationship in the VAM.After the basic understanding of the concept,the second part of the content is based on the case to analyze the reality of the transaction faced several problems.For example,determine the effectiveness of the statute of limitations,the effectiveness of the agreement and the effectiveness of the repurchase agreement.These problems are concentrated in the reality of the dispute,in the current environment for VAM also more critical.In the last part,the author puts forward some suggestions on the improvement of the VAM by referring to the experience of foreign countries and combining the present situation of our country.First of all,we need to carry out a comprehensive plan in legislation.secondly,the securities regulatory association should be given to commercial operation in a more open environment on market regulation.At last,the author thinks that it is necessary to set up venture capital industry self-discipline organization.Through these three aspects of cooperation,we hope to make the application of the VAM more flexible by the market.