Study On Legal Issue Of Valuation Adjustment Mechanism

Valuation Adjustment Mechanism(VAM)as an emerging concept produced after the introduction of Venture Capital in China catched the judicial circles and academic's attention after the case of Suzhou Industrial Park Haifu Investment Co.,Ltd.In the legal system of our country,there is no relevant provisions on VAM,and even in America whose Venture Capital is popular,there's no VAM.Now there's different views about the nature and application of the VAM.This article uses the empirical analysis,logical analysis and semantic analysis to define the nature of VAM in our country's legal system,and clarifying its applicable provisions,points out the shortage of regulation and market and put forward suggestions specificly based on VAM's emergence and development.This article uses comparison analysis reveals lack of applicable law in the field of Venture Capital in our country by comparing the differences between our country and the United States capital maintains principle applies,creatively put forward a judgment standard about capital maintains principle of protecting the creditor benefit to decide whether company repurchase in violation of the principle of capital maintains principle.Make sure the VAM's efficacy between the investors and target companies on the basis of protecting the interests of creditors according to the companies' specific situation.