A Study On The Compensation For Damages Of Misrepresentation Of Securities Business In China

The securities business is a market not only for the commercial financing, but also for the private investment and speculation, which are according to the public information and documents. Chasing big profit,the founder-memnber make misrepresentation sometimes. So many countries introduced numerous systems,in which of that, the information disclosure system is the most effective. It regulates that, the founder-member should open the necessary information and documents . To be sure that all the open materials are true and accurate, without any omission and misleading, and must be supervised by professors, such as lawyer, accountant, auditor and engineer before being publicizing.But this cann't extinguish the misrepresentation. Some countries have established mature regulations, which are dead against the misrepresentation, e.g. America and Japan. The victims can recover their right by civil remedies in Taiwan Area too.However, the beginning and developing of the securities business in China is immature and having great deal of deficiency,leaving space for the misrepresentation. For a long time, the misrepresentation of securities market was only regulated by the Administrative Law in China, until the amendment of the Criminal Law in 1997. Nevertheless, the criminal and administrative responsibility cannot bring any actual benefit to the victim. Suing the misrepresentation under the Civil Law is the only way to compensate the damage. However, there are short of regulations about the obligation of the principal, the doctrine of liability fixation, the measurement and amount of the compensation caused by misrepresentation in the Civil Law. So, to meet the need of the fleetly developing securities market, it isextremely necessary to establish a mature civil responsibility system against the misrepresentation.In January 9th, 2003, the Supreme People's Court published The Regulations on the Civil Compensation Caused by the Misrepresentation in the Securities Market, which became effective on February 1. It is the first systemic judicial interpretation under the civil compensation legislation on the misrepresentation in our securities market. It not only offers specific judicial criteria for the People's Court to judge the cases about misrepresentation, but also plays a great role on the establishment of the civil compensation system is China.Making use of the current legislation and judicial interpretation, this dissertation studies the basic issues on the civil compensation system about the misrepresentation in the securities market, and brings forward some points of view. The research methods including the system comparison, the economical analyses, the case analyses and logical analyses are applied in this dissertation.