Dacheng Attorney Attends CVCPEA Value Adjustment Mechanism (VAM) Legislation Symposium

On May 15, nearly two hundred private equity firms were convened by China Venture Capital & Private Equity Association (“CVCPEA”) to discuss implications of the latest court ruling regarding a VC/PE value adjustment mechanism (VAM) arrangement case and its impact on VC/PE VAM legislation. The case, which was successfully represented by Dacheng senior partner Yu Hui from the finance practice, recognized the validity and enforceability of the VAM arrangement in question.

At the conference, Yu recalled how he argued for the case despite tremendous pressure from a previous Supreme Court ruling denying the validity and enforceability of a VAM arrangement. Yu also presided over the session where issues such as the protection of VAM through legislation were more thoroughly discussed by members of the Legislative Affairs Committee of the Standing Committee of 12th National People Congress, Legislative Affairs Office of the State Council, China International Economic and Trade Arbitration Commission, established investors and law professors.

Liu Hongbo, head of PE investment regulatory department of China Securities Regulatory Commission, gave credit to Yu for what he had done in protecting the interests of the PE industry at large.