CONTENTS
Chapter 1 …………………………………………………………………………1
I. Introduction …………………………………………………………………3
A. Valuation Adjustment Mechanism …………………………………3
B. Issues …………………………………………………………………6
C. Solution ………………………………………………………………9
D. Conclusions …………………………………………………………12
E. Overview of the Book ………………………………………………15
II. Background ………………………………………………………………15
A. Overview of Valuation Adjustment Mechanism ……………………15
B. History of Valuation Adjustment Mechanism ………………………18
III. Literature Review ………………………………………………………27
A. Concept of Valuation Adjustment Mechanism ……………………28
B. Are VAMs Invalid …………………………………………………30
C. Redemption Rights …………………………………………………31
Chapter 2 ………………………………………………………………………33
I. Reasonable VAMs ………………………………………………………36
A. Basic Functions of VAMs Being Fulfilled …………………………37
B. Without Creating Even Greater Costs as a Side-Effect …………40
II. Due Diligence before Drafting VAMs …………………………………42
A. Due Diligence of Private Equity Projects in the PRC ………………43
B. Specific Information for Drafting VAMs……………………………46
C. Reasons of Due Diligence for Drafting a VAM ……………………49
III. Government Guidelines for Drafting VAMs …………………………50
A. Government Guidelines ……………………………………………50
B. What is the Government Guidelines for Drafting VAMs …………51
C. Reasons of Issuing Government Guidelines for Drafting VAMs …57
Chapter 3………………………………………………………………………61
I. Invalid Contract and Obstacles to Performance ………………………67
A. Invalid Contract ……………………………………………………68
B. Obstacles to Performance……………………………………………69
II. Problems …………………………………………………………………70
A. Different Judgments for One Issue …………………………………70
B. Main Points for VAM Issues ………………………………………71
III. VAM Judicial Interpretation ……………………………………………73
A. Judicial Interpretation ………………………………………………73
B. The Content of VAM Judicial Interpretation ………………………75
IV. Benefits of VAM Judicial Interpretation ………………………………85
A. Solve VAM Issues Quickly and Professionally ……………………85
B. Help People to Fulfill the Functions of VAMs ……………………86
C. Reduce Costs of VAMs ……………………………………………87
Chapter 4………………………………………………………………………91
I. Redemption Rights ………………………………………………………94
A. What Are Redemption Rights? ……………………………………94
B. The VAMs with Redemption Rights ………………………………96
II. Conflicts …………………………………………………………………97
A. Conflict between VAMs and Article 142 in the PRC Company Law(2018)………………………………………………………………97
B. Conflict between VAMs with Redemption Rights and Impairing Legal Capital…………………………………………………………99
III. Legal Treatment of VAMs with Redemption Rights in the PRC …101
A. The PRC Company Law …………………………………………101
B. Court Opinions ……………………………………………………106
C. Problems of Article 142 in the PRC Company Law(2018)………110
IV. The New Redemption Right Regulation ……………………………113
A. What is the New Redemption Right Regulation …………………113
B. The Origin of the New Redemption Right Regulation ……………115
V. The Benefits of the New Redemption Right Regulation to the VAM With Redemption Rights ………………………………118
A. The Functions of the VAM with Redemption Rights to be Fulfilled ………………………118
B. Reduce Litigation Costs ……………………………………………120
C. Eliminate Legal Errors in Judgments………………………………121
Conclusion.............................................................................................123
Bibliography...........................................................................................127
Appendix 1.............................................................................................133
Appendix 2.............................................................................................137
后记 ……………………………………………………………………………141