Study On The Legal Supervision Of VIE

Over the years, a large number of enterprises in China through the protocol control mode in overseas capital markets, it is an undoubted fact. People hold different opinions to the VIE model. Some of them said it is illegal, and these enterprises through this model has the "original sin". Do our government have the obligation to supervise the VIE model (variable interest entity) or those listed companies by the VIE model on the overseas have stepped into a grey zone which is without supervise? It is time that we should pay attention to how to supervise the VIE model and what the principles should we take? The so-called "VIE structure", also known as the "protocol control", usually refers to the listed company and its overseas entity is separated from the operational business entity of China, the listed company is a foreign company, and the overseas company by means of agreement to control the Chinese business entity.However, there are no direct law to conduct the protocol control model in our country. Academic area and companies have different views to the VIE model. This thesis is going to discuss that protocol control mode is a kind of curve way which enterprises can listed on the overseas. It is reasonably that companies chose the VIE model under the pressure of the domestic financial policy and the domestic capital market is not perfectly developed and they need access to capital support.At the beginning, this thesis is going to introduce the concept, origin, classification. structure and advantages and disadvantages of the protocol control model; second, analysis the current situation of regulatory system; Again, analysis the foreign investment law (draft). In the end, this thesis puts important on finding the way to solve the problem of variable interest entities. To analysis the impact of regulatory system which as the basic theory of the legal regulation. Meanwhile, this thesis points out the necessity of regulation and the defects of the current legislation, finally puts forward some suggestions of improve the system of legal supervision.