Research On The Tort Liability Of Misrepresentation In Securities Act

In our own markets, there has already been a succession of scandals of false disclosures, which made a great damage to the investors. The civil liability and remedy for securities fraud plays an important part in protecting the lawful rights and interests of investors. Civil liability system of representation fictitiously in security law is a weak link in our China's securities legislation; it urgently needs a thorough theoretical research. Based on analyzing the rule of civil liability. The author inspects the theories and concrete evidences of different countries' securities laws, studies entity law and procedure law of civil liability of representation fictitiously in security law with the clues. This dissertation is divided into three parts.Part one explicates the tort liability including who should have a cause of action of action, who should be liable for (defendants) and the causation between liability and damage. It comprises four chapters. Chapter I concrete the liability category as tort liability. Chapter II analyzes the composition of the tort liability. Chapter III restricts actions of false statements and analyzes different forms of civil liability of actions of false statements. Chapter IV is about the causality, it is the premise and foundation of the liability principled, the liability principles of own call for victims must prove the causality between the false statement actions and damages. For the particularity of security market, it is very difficult to prove the direct causality.Part two deals with those who have caused damage to investors and shall be liable to pay compensation, including the issuer, the underwriter, directors, experts and possibly others' tort liability and compensation for the wrong committed by them. In our China's securities law, subjects that undertake civil liability system of securities false statements include publisher and sponsor; board and manger; securities specialized service organization and specialized staff.Part three comprises three chapters. They are establishing jurisdiction,lawsuit form,compensating damages .They mainly from the procedural aspect expatiate how to protect investors ' benefits, it's to say plaintiffs how to claim commitment and compensation. At the same time, it undertake a review of legislative and the judicial practice of the civil liability and remedy for securities false disclosures in China, especially examines the rule barriers toward the civil litigation system in China. It also provides legislative recommendations and systematic designs of civil liability and remedy for Chinese securities market in order to establish a sound mechanism to prohibit securities false disclosures. Finally, several suggestions are submitted as the possible solutions.