Research On The Legal Issues Of VAM From The Perspective Of Private Equity Investment

In private equity investment,on the one hand,the use of VAM reduces the investment risk caused by information asymmetry for investors,on the other hand,it provides convenience for financing of small and medium-sized enterprises.By virtue of its many advantages,the VAM has been widely used in the field of private equity investment since it was introduced from abroad.There is a big dispute about the application of the domestic VAM,especially the issue of its effectiveness.There is no clear law to make clear provisions on it,which leads to many disputes in practice and hinders the development of private equity investment.After settling of the "Haifu case",the judgment paradigm of "invalid VAM against company and effective VAM against shareholder" was established.Since then,the judgments of "Hanlin case" and "Huagong case" further encouraged commercial transaction and guaranteed the freedom of contract,but they failed to get adequate legal and social effects.On November 14,2019,the Supreme People's Court issued the Summary of the National Civil and Commercial Trial Conference,which broke through the judgment paradigm established in the "Haifu case" and made obvious progress from the perspective of protecting investment and entrepreneurship,but it still left room for in-depth discussion theoretically.It is of certain theoretical value and practical significance to study the problem of VAM from the perspective of private equity investment.In addition to the introduction and conclusion,this paper is divided into four parts: Firstly,this paper analyzes the data of the VAM in private equity investment to understand the application status in practice.Secondly,it focuses on the analysis of the legal relationship,legal nature and the specific type of VAM with the typical cases in practice,based on the basic category of the VAM.Thirdly,it analyzes and summarizes the various controversial points and difficulties in the application of the VAM in practice,combining with the latest legal documents and difficult cases.At last,the paper puts forward ways to improve the application of the VAM from the perspective of private equity investment.