Research on Legal Regulation of Performance Commitment Compensation in Major Asset Reorganization of Listed Companies Abstract:

Abstract

The purpose of performance promise compensation is to compensate for the uncertainty of the value of the underlying assets in major asset reorganization, which exists dependent on the asset reorganization rela - tionship and includes two major elements, performance promise and performance compensation, which are complementary to each other. Due to improper intervention of administrative power, inadequate information disclosure system, imbalance of regulatory objectives of M&A and restructuring, and poor functioning of in - termediaries, supervisory companies have difficulties in the process of M&A such as prominent contradiction of management rights, distortion of M&A and restructuring market, and "de-realization to deficiency". In re - sponse to these dilemmas, the existing system needs to update the regulatory concept, diversify the configura- tion of performance indicators, appropriately adopt profitability payment plans and rationally set up compen - sation methods, so as to give full play to the institutional function of performance commitment compensation.