Performance Compensation Commitment And Protection Of Interests Of Minority Shareholders

In recent years,there has been no decline in mergers and acquisitions,and there is no way to ignore the fact that,in the form of an innovative merger contract,a promise of performance,it is a "standard configuration" of mergers and acquisitions.The performance commitment is a promise made by the target company to its performance in the next few years,and the risk allocation between the investment company and the original shareholders of the target company will be carried out between the investment company and the original shareholders of the target company after the acquisition and reorganization,so as to curb the behaviors of the two parties to conduct the evaluation and pricing,and realize the fair transaction in order to protect the interests of the small investors.In 2017,the number of companies involved in the merger and reorganization in terms of performance compensation commitment was almost 14 times in 2011.According to statistics,China's outstanding performance pledges in 2017 accounted for 24.06% of the listed companies,and the high performance pledge became the "the moon of the mirror".The performance of the target company fails to meet the standard,even if the acquirer receives the performance compensation,the interests of the small and medium investors are really protected?Thinking based on the above problems,this article to Ourpalm Co.,Ltd of upstream(Shanghai)information technology Co.,Ltd.70% stake in the performance compensation commitment as an example,through the analysis of palm boring technology commitment signed performance before and after several years of financial situation and its comprehensive performance is analyzed based on economic value added and their performance in signed compensation calculated commitment,declaring the upstream information performance not up to standard and receive performance compensation commitment by these three events after 10 shares of the stock yield,market value of a "stunt",in the big shareholders have made rich and departure,initially take a fancy to performance compensation commitment to small and medium-sized investors is the target company's performance is not up to standard,really pay for performance to make promises is still small and medium shareholders.Therefore,this paper argues that performance compensation promised to protect the interests of minority shareholders is limited,relevant departments need to perfect the performance compensation commitment mechanism in order to better protect the interests of minority shareholders.