Legal Control Of Corporate Merger Risk Under The Background Of Cultural Industry Development

In recent years,our government has issued a series of fiscal and tax policies in order to improve the development of Chinese culture industry.For example:In September 2009,our government introduced the first “The Cultural Industry Revitalization Plan”and “The Ministry of Culture's guidelines on speeding up the development of cultural industry”;In March 2010, The Central Propaganda Department and other 8 Departments jointly issued “The Guidance on Financial Support for the Revitalization and Development and prosperity of Cultural Industry”;In February 2014, the State Council promulgated “Recommendations on Promoting the Integral Development of Cultural Creativity and Design Services and Relevant Industries”,etc.With the basic framework and the system of China's capital market being continuously improved,on May 9th,2014,the State Council issued “Recommendations on the Further Promotion of the Capital Market's Healthy Development”,the move has also given further impetus to listed companies ‘enthusiasm in merger and reorganization to grow.Additionally,enterprises usually waited a long time before they get the permit of initial public offerings;Powerful attractions and its own characteristics of “High Input and High Output”of the Cultural Industry have attracted numerous listed companies to enter this field.Thus, mergers and acquisitions of cultural enterprises have become the “new favorites”in the eyes of the investors.Since the year of 2013,the merger events of cultural enterprises have shown a trend of being more frequently than ever before:In 2013,within the cultural industries,there was a total of 96 cases of M&A events,amounting to 50 billion yuan.While in the year of 2014,the mergers and acquisitions of cultural enterprises have approached a climax,about more than 200 mergers and strategic buy-in events took place this year,the total trading volume has also exceeded 200 billion yuan.It's worth noting that behind the “mergers and acquisitions” craze in cultural industry,there are also some problems and special risks that can't be ignored.In the domestic field of law,on the study of China's cultural industry,current researches are focused on investment fund etc.,few legal scholars conduct more in-depth researches on the merger and acquisition events of cultural enterprises from a legal perspective.In this article,I used a combination of inductive and deductive methods,literature research methods etc. to study the risks that emerged during the merger of cultural enterprises in order to put forward a series of solutions from the legal level and construct a set of legal systems that can provide effective solutions to these problems.