Research On On The Legal Effect Of Valuation Adjustment Mechanism

Valuation adjustment mechanism is actually a valuation adjustment mechanism(Valuation Adjustment Mechanism),a popular name.It is a kind of investment tool often used in foreign capital market.He is based on the future performance of the enterprise or a certain standard conditions as the contract conditions,if the future of the enterprise to achieve a performance or a market conditions to achieve or not to arrange the investment interests of both sides of the agreement.The agreement on gambling is due to investors and financiers due to inconsistency of the invested enterprise valuation,to enterprise future performance or a state as a condition to be agreed upon the fulfillment of the conditions,the parties to the invested enterprise actual operating performance as the standard,to adjust the target of enterprise valuation and equity.Thus,the agreement on gambling is not a separate agreement on gambling terms but the investment agreement,to encourage financing diligent and efficient to achieve the desired business objectives,so as to balance between the interests of investors and financiers.Along this line of thought,this paper is divided into four parts besides the introduction and conclusion:In the first part,first of all,the author makes a brief analysis of the classic case of "the first case of gambling".And then the supreme law of the depth of the study,in the last part of the supreme law of the case and other open channels to obtain the judicial documents to sort out a common rule.The second part is the analysis of the concept and function of the valuation adjustment mechanism,starting from the theoretical basis of the valuation adjustment mechanism.In depth analysis of the legal relationship and the legal nature of the valuation adjustment mechanism,from the theoretical analysis of the effectiveness of the valuation adjustment mechanism.The third part is the research on the factors of the valuation adjustment mechanism legal effect,the effective elements of the valuation adjustment mechanism,the agreement will be invalid when what gambling,betting on what happens when the agreement can be revoked and the agreement on gambling pending.The fourth part is to put forward the existing problems in the existing legal framework and related suggestions.The first half of the proposed agreement on the existence of a variety of risks and the current regulatory agreement on the legal issues of gambling;the second half of the proposed agreement to reduce the effectiveness of the agreement on the risk of the proposal and the application of the system of valuation adjustment mechanism.