Year: 2025
Type: article
Abstract: After the promulgation of the Minutes, the focus of controversy in equity repurchase VAM agreements has shifted from the legal effect of VAM agreements to the performance of VAM repurchases. At present, the main obstacle to VAM repurchase is the principle of capital maintenance and the restriction on equity repurchase, which makes it impossible for investors to exit through equity repurchase. After analysing the obstacles to the performance of VAM repurchases, it is proposed to adopt the solvency criterion to clarify the legally available funds. Clarifying the relationship between VAM repurchase and capital maintenance and opening up the restrictions on equity repurchase are the correct rule for reviewing equity repurchases.
Author: Xiaomin Yi
Institution: Southwest Petroleum University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4408916925