A Research On Stock Infringement Civil Case

Established since 1990, the securities business in our country has made outstanding achievements. However, due to the relevant unsound laws and codes, and the impotent supervision, as well as the nonstandard operation of the market, the acts of infringing the legal rights and interests of those medium-sized and small investors happen repeatedly, and could not be stopped from taking place again. With the exposal of malign cases of infringing the investors' rights and interests, such as Yi'an Science and Technology, Guangxia (Yinchuan) Industry, Lantian Stock and Macat, the whole society becomes startled and begins to strongly appeal to court for the involvement of dealing with such kind of cases. Owing to the comparatively extensive infringement subjects and behaviors of torts in securities business, various forms, numerous infringed objects, and no previous judgment experience to use for reference, the juridical handling of stock infringement civil cases has experienced the four phases of "indictment rejection," "suspended acceptance," "conditional acceptance" and "further extended acceptance." In accordance with the juridical practices, the academe began to concern with the tort issues of securities business in 2000, and made an earnest request for the establishment of stock civil compensation system. On January 9th, 2003, the Supreme People's Court promulgated "Some Regulations about the Trial of Civil Compensation Cases Arising from False Statements in Securities Business", which prescribed the litigation form of stock infringement civil cases with false statements as separate litigation and representative litigation with certain numbers of people. This has aroused fairly drastic argument in academe and pragmatic circles. The thesis tends to study the stock infringement civil compensation system from the angle of procedure law, so as to search after the right litigation mode of stock infringement civil cases which suits the situation of our country and is in accordance with the requests for equity and justice. With the analysis of separate litigation, collective litigation and representative litigation to settle the issues existed in China's stock infringement civil cases, the author thinks that none of these litigation modes is the optimal approach. On the basis of this, theauthor makes further comparison and analysis with several overseas litigations patterns which are generally applicable to deal with collective dissension, and concludes that the adaptive litigation pattern to settle the current stock infringement civil cases in our country is the reconstructed representative litigation system, which absorbs the reasonable elements of the collective litigation patterns abroad on the basis of the existing representative litigation with uncertain numbers of people. Since the details of stock infringement civil litigations are complicated and the litigation cycle is often very long, the experience of the whole litigation procedure has become a heavy and troublesome course for the court and each party. Under these circumstances, the author not only searches for the reasonable litigation pattern to handle the stock infringement civil cases of the thesis, but also primarily seeks after other measures of settlement besides litigation, provides multiple alternative channels for the party to deal with the stock infringement civil cases. Therefore, we could reduce the settlement costs of each party, protect the investors and enhance the sound development of the securities business.