RESEARCH ON THE IMPACT OF THE CHINESE COMPANY LAW DRAFT REVISION ON INVESTMENT TERMS - TAKING CLASS SHARES AND AUTHORIZED SHARES AS EXAMPLES

Abstract

This article starts from the draft revision of Chinese company law and focuses on the introduction of the class share system and the authorized shares system. The revised content and legislative value impact of these two systems are analyzed separately, especially the impact on investment provisions such as VAM agreements, anti-dilution provisions and preemption provisions. The introduction of the two new systems will have a profound impact on Chinese capital market, and both will help improve the efficiency of corporate financing. Class shares separate property rights and voting rights, which is beneficial for investors to choose diversified investment identities. The introduction of the authorized shares system transfers the power of issuing new shares to the board of directors, which improves the efficiency of new share issuance. the validity of the agreement. The ease of issuing new shares may cause equity dilution risk, so anti-dilution provisions may become more important investment provisions. As for the right of first refusal, which sacrifices efficiency, it may be abandoned in the future due to the efficiency orientation of corporate law.