The Legal Risks And Countermeasures Of The Venture To Valuation Adjustment Mechanism

Valuation adjustment mechanism is a kind of means of protection to the Venture Enterprises investors generally used,but probably fall into the predicament of the risk.Currently,from the policy level,government encourage and support Venture Enterprises start to grow.Solving the problem face to it and pave the way for its development have become the top priority.According to probe into principle of Contract law in our country,Valuation adjustment mechanism is not a shot contract,but a non typical effect of the conditions of the contract.The Supreme court case of Haifu investments and subsequent cases,become recognized principles of Valuation adjustment mechanism.It is as a financial concept,but has both financial and legal aspects.Except for the financial risk,the legal risks of Valuation adjustment mechanism include legal barrier risk and the risk of legal applicability.Law barrier risk embodies the excluding of the national laws and regulations.Law applied risk is essential design flaws of financing party in building Valuation adjustment mechanism.Risk problem of Valuation adjustment mechanism is a long-term and realistic problem.At present,there is not perfect capital market in our country,financing party lack of identification and control of risk,it is difficult to manage applicable principles of Anglo-American law system,which is the micro cause of Valuation adjustment mechanism.Solveing risk of Venture Enterprises is a long process,not only think of the longer term,but also grasp the current interests.Therefore,accelerate establish our perfect financing legal system is the basic task,which is the long-range solution to the risk;At present,offshore company platform,is the expedient to against legal risks;Set up complete the terms of the contract is the weapon to protect the interests of the financing party;when the risk rise to the dispute,through litigation,arbitration to seek legal authority and the third party legal organization aid is the final solution.