Research On The Legal Effect Of The Bet Agreement

In private equity transactions,in terms of relevant information of the target company,financiers have more information than investors,investors grasp the relative less information.Thus resulting the asymmetric information between the parties.In order to solve the problem of asymmetric information,and promote the investment and financing more fast,investors usually take measures to reduce the information asymmetry risks,one of the commonly way is valuation adjustment mechanism.Due to the valuation adjustment mechanism has the characteristics of high risk,high return,similar to gambling.So,it is called bet agreement in our country.Bet agreement is used to promote investment and financing,control the investment risks,incentive the financiers and so on,which is widely used in private equity investment of our country.But questions about the legal effect of bet agreement does not reach an agreement.It is discussed particularly intense is that whether the target company can be a effective partis of bet agreement or not.The long dispute hinde the bet agreement to promote investment and financing function of the play.In order to change this situation,we must be devoted to research its legal effect.In this paper,starting from the connotation of bet agreement,analysis and interpretation of the underlying concepts,on the basis of the theory of legal effect to our country about the bet agreement concluded that theories and judicial status quo and analysis,evaluation.On the basis of trying to build the legal effect standard of bet agreement and applied to judgement the legal effect of bet protocol specific types.Afterward puting forward that the legal effect standard of bet agreement should analyz the specific issues instead of sweeping negation and affirmation.It Should be recognized as the principle of effective,as an exception to identify invalid.Specifically,this paper consists of five parts.The first part,analysis,and interpret the connotation of bet agreement.Native concept as a starting point to bet agreement and comparing with the mechanism of "retreat more fill less",which is the form of trading practice in our country.Conclusing that both bet agreement and "retreat morefill less" belong to valuation adjustment mechanism.And then,,further to analysis its theoretical basis,legal nature,basic types and related problems in order to clarify the concept of bet agreement.Then discusses on the legal effect of bet agreement problem deeply,which is the core concern at present.The second part,introduction and evaluation the theory and judicial status quo about the legal effect of bet agreement,summary the opinions and standards,build the foundation of the standard about the legal effect of bet agreement.The third part,the paper puts forward the basic principles and the legal norms of legal effect,which can be used to judge on the bet agreement,build the standard of legal effectiveness about bet agreement.The fourth part,analysis the legal effect of the bet agreement in our country,which is common and disput types in the practice with the standard.The fifth part,summary the point of view and put forward the problems and suggestions that should pay attention to when determining the legal effect of the bet agreement.When constitute bet against the legal effect,We should adopt the compromise idea in theory,obey the relevant judicial policy in practice,take principles of effective presumption,try to avoid invalid.The legal effect of the bet agreement should be specific analysis,respectively for the analysis judgment,avoid one size fits all.The bet agreement between target company bet and invester should not be invalid,if it is not in violation rules of the effectiveness of the company law and other laws or regulations mandatory provisions,should not deny its validity easily because of no rules.In order to protect the interests of creditors when the shareholders using the company's independent personality to evade debt,we should use of "piercing the corporate veil" theory reversely,recognise the effectiveness of the bet agreement with target company.