Legal Proceedings Cases (Series of Teaching Materials on Securities Case Studies · Typical Cases of the Chinese Securities Market)

Author: Feng Guo, Zhang Yan, Tao Guanghui
Publisher:
Publish Date: 2003-03-21
Features: The Chinese securities market originated in the 1980s. The young Chinese securities market has weathered many storms, evoking concern. The protection of investors' interests and the reconstruction of the securities market order have been particularly closely watched by the world. On January 15, 2002, the Supreme People's Court issued the "Notice on Issues Concerning the Acceptance of Civil Liability Disputes in the Securities Market Caused by False Statements," opening the door to judicial relief for securities investors. In the past year, courts across the country have accepted nearly 900 civil compensation cases for false statements in the securities market. Recently, the case of Peng Miaoqiu suing Shanghai Jiabao Industrial (Group) Co., Ltd. and 13 former directors and 2 certified public accountants for false statements, as well as the case of 11 shareholders suing the former Hongguang Industrial Company for damages due to false statements, have finally reached a conclusion, but both were settled through out-of-court agreements and mediation. The reason why only a handful of the hundreds of false statement cases have entered substantive trials, and even the two that were settled, could only be resolved through non-judgmental means, lies in the following: First, the current securities legislation lacks comprehensive and systematic provisions for civil liability in the securities market, failing to systematically regulate securities fraud. Second, due to the short history of the securities market, research on civil liability for securities fraud in academia has been extremely weak, unable to provide effective theoretical support for the courts in handling such cases. In light of this, we were inspired to organize, analyze, and evaluate typical dispute cases in the current securities market. Of course, the handling of securities dispute cases is still in its early stages, so the purpose of writing this book is not limited to analyzing existing cases. Rather, it aims to provide some legislative and judicial proposals for the establishment of a civil liability mechanism in securities. Therefore, if this book differs from general case analyses, it is that it places greater emphasis on theoretical analysis and discussion. During the process of writing this book, we found that the issues are far more complex and challenging than imagined. Due to limited time, the collection, organization, and analysis of our materials fall far short of our intended goals. What is now presented to the readers can only be considered an unsatisfactory small volume. This book is mainly compiled and written by Zhang Yan and Tao Guanghui. Due to the current limitations in materials and research capabilities, this book undoubtedly has many shortcomings. We sincerely welcome any criticism and corrections from the readers.