The Effectiveness Analysis Of Valuation Adjustment Provision In Private Equity Cases

As a valuation adjustment mechanism,the Valuation adjustment provisions is a kind of bet of the financing enterprises in the investment activities in the future.In recent years,the Valuation adjustment provisions is not only exists in the traditional overseas private equity investment fund industry,but also exists in the all kinds of civil activity,in judicial practice,some enterprises based on the Valuation adjustment provisions has achieved great economic benefits,but most companies are losing their control towards the enterprise,and according to the inappropriate use of Valuation adjustment provisions,the enterprise has gradually been eliminated.In the judicial practice,the different levels of the disputes occurred,especially the different levels of the court in the civil cases,lead to social public to the system's suspicion and exclusion,and the relevant content of the Valuation adjustment provisions cannot correctly handle and coordinate with the company law of the capital maintenance system,and there is no clear line between equity and creditors,whether the interests of the small shareholders are violated,and the shareholders abuse of power damage to the interests of the creditors,all factors decide the weakness of the Valuation adjustment provisions.Based on the above background,article one states concept of Valuation adjustment provisions and classification,article two states all kinds of civil cases,to analysis the perspective of the legal status andjudicial practice,from the comparison of legal and related rights,from the conflict with the principle of the company law and the prevention of the law.Article three states what is the conflict between the Valuation adjustment provisions and the related system,how to correctly deal with the social public for the wrong understanding of gambling,and article four states how to regulate and control the legal risk in order to further explain the rationality and value ofValuation adjustment provisions.To play an indispensable role in the business behavior of the social subject participation,we must regulate and guide,the legislative level of the guidance and encouragement,while the enterprise to combine their own business ability and development pace,reasonable forecast the future development of enterprises,in order to achieve the legal guidance of the capital operation market of healthy development.