Equity Repurchase Valuation Adjustment Mechanism Agreement Performance Research

In recent years,equity repurchase type betting agreement,as a financial innovation tool,has become a commonly adopted form of agreement in the field of investment and financing.However,due to the relevant provisions of the Jiumin Minute and the lack of rules for the performance of equity repurchase type betting agreements,it is very difficult for investors to request the target company to fulfill its equity repurchase obligations after a betting failure.Thus,the analysis of the basic theory of equity repurchase type betting agreement mainly includes the explanation of the definition,nature and characteristics of the repurchase type betting agreement,and the analysis of the legal existence of the agreement’s momentary failure to perform.Then,by sorting out the cases related to equity repurchase betting agreements,we summarize and conclude that there are four major problems in the performance of equity repurchase betting agreements: first,the inconsistent review standard of equity repurchase hinders the performance of the agreement;second,the lack of reasonable restrictions on the source of funds available for repurchase hinders the performance of the repurchase obligation;third,the pre-capital reduction procedure hinders the performance of the repurchase obligation;fourth,the equity repurchase betting Fourth,the content of the equity repurchase betting agreement is unreasonable,which hinders the performance of the repurchase obligation;in the face of the problems in the equity repurchase betting agreement,we try to propose targeted countermeasures by taking into account the relevant regulations in foreign countries.First,to establish a unified review standard for equity repurchase to determine whether the equity repurchase clause in the repurchase agreement has the conditions for performance;second,to establish a repurchase betting financial source restriction system to determine the scope of repurchase funds;third,to abolish the capital reduction procedure and untie the capital reduction and equity repurchase;fourth,to improve the specific contents of the equity repurchase type of betting agreement and increase the preventive guarantee mechanism to avoid the performance risk.