The Core Referee Points Analysis Of Valuation Adjustment Mechanism Disputes

Nearly 40 years since the reform and opening up,China's economy continuously fast development with high quality,Market entities are also increasingly active,The form of investment is also more and more diversified and complicated,Among them,the(Valuation Adjustment Mechanism)VAM has become a very important content in the field of equity investment and financing.As Goldman Sachs,Actis,Morgan Stanley and other international private equity investment into China's enterprises,the VAM was introduced into China.Because of Mengniu and Morgan Stanley,represented by the investor after the perfect deduce bet and win-win,The VAM is becoming more and more popular in China's equity investment and financing market.Of course,there are many gamble failed businesses,such as Paradise electronics,Taizi Milk,South Beauty.Since then,after more than 10 years of development,the VAM is frequently used in the field of equity investment,has become an important channel for small and medium enterprises,especially start-ups financing channels and platforms.However,for many reasons such as the VAM embedded valuation adjustment technology clause result in strong professional,immature investors and financiers,IPO(initial public offering)has been suspended,Cases about the VAM crop up frequently.It first known to the public,that is the industry known as China's first case of the VAM " Gansu Shi Heng colored recycling Co,Ltd and Suzhou Industrial Park Hai Fu Investment Co,Ltd capital increase case "(hereinafter referred to as the Haifu case)." The Haifu case opens the circles of theory and practice about the VAM a heated debate such as the effect,the nature,application of law,risk prevention,legal regulation.At present,the VAM disputes show a trend of diversification.In recent years,there have been many cases involving the performance,the listing of the investment contract dispute cases.Some request to cancel the contract,some want to confirm the contract effectiveness,however,some please share repurchases,some cash compensation,the judgment results are different too.So in the field of equity investment,referring to the VAM,what is a devil or an angel,unable to agree on which is right.There is still a certain misunderstanding about the understanding,cognizance and legal application of the VAM.Based on this,the author starts from the Chinese referee instruments net publishedwritten judgment of the courts at all levels across the country(August 2013-January 2017)sampling 25 typical cases,on the basis of a brief introduction of the case,the focus of controversy,the summary of the court finds and the results of the decision,after the embedded depth analysis on the types,characteristics and properties of the VAM,aims at the common problems reflected by typical cases in judicial practice,generalizes the core referee points of the VAM in equity investment.Hope to be able to make investors cautious investment,and not to seek short-term wealth,also hope to be helpful to the equity investment field and judicial practice.