Research On The Investors' Rights Protection Of Private Equity In Adjustment Valuation Mechanism

Because of its unique advantages,private equity financing has developed rapidly in China in recent years and has become one of the important financing methods in the country at this stage.Firstly,the threshold required for private equity financing is relatively low compared to traditional financing methods.Secondly,the private equity financing method is more flexible and more rational in resource allocation.The emergence of private equity financing to a certain extent solved the problem of corporate financing difficulties.However,the rapid development of private equity has also exposed some of its hidden problems,especially in investor protection.Investors often suffer from asymmetric information and other reasons.The use of gambling agreements as a means to adjust valuations came into being.Although the gambling agreement solves the problem of investors' asymmetric information,as an exotic product,there are also many problems in the process of "localization".First of all,the current stage of Chinese laws is unclear about the positioning of gambling agreements,and lacks specific adjustment methods.Second,most of the terms of gambling agreements originate from joint stock companies,and it is also controversial whether they can be used directly in limited liability companies;finally,the gambling agreement whether or not there is a dispute over the principle of fairness makes its own validity in doubt.Although there are problems in private equity,it is still a good source of financing.The same is true for gambling agreements.As an important means to protect private equity investors,their own effectiveness and practical issues will severely restrict their application.Therefore,it is very important to resolve the theoretical issues involved in the gambling agreement and study how to effectively protect the rights of private equity investors through specific institutional arrangements.On the theoretical issues involved in the gambling agreement,it should mainly address the following points: First,it is clear about the legal nature of the gambling agreement.Only by clarifying the legal nature of the gambling agreement can we find its exact positioning and be able to make appropriate adjustments to it;secondly,research on gambling.The legality of the agreement and the precondition for legality to protect the rights of investors.Secondly,whether the various systems in the gambling agreement can be applied to limited liability companies.Most of the private equity investment business in China is carried out in limited companies.Therefore,it is very important to remove the obstacles in the system.On the practical issues involved in the gambling agreement,the following points should be mainly addressed: First,study the court's previous trials of the gambling agreement,clarify the court's attitude toward the gambling agreement and its various systems,and summarize the gambling agreement.The key points of the design are to prevent the gambling agreement from being judged to be ineffective in the event of actual disputes.Second,to study the specific role played by the gambling agreement in the entire private equity investment process,summarize the problems encountered in the actual operation,and consider the solutions.Of course,the development of gambling agreements depends on the further improvement of Chinese relevant laws and regulations,and it also depends on Chinese strong support for financial innovation.Studying the gambling agreement and its specific systems so that it can effectively protect the rights of investors will be of great benefit to Chinese investment and financing business and even financial innovation.