On The Exempting System Of The US's Disclosure Of Forward Looking Information

In order to encourage companies to disclose forward looking information, the U. S. enacted special laws to protect the behavior, among safe harbor system is the core of those laws. Safe Harbor system consists of two parts, general rule and unique rule. According to general rule, as long as a forward-looking statement by an issuer, or its officers, directors, or employees acting on its behalf comply with the following elements, it shall be deemed not to be a fraudulent statement, even if the actual results to differ materially from the predicted:First, forward-looking statement fall within the scope of Safe Harbor. Second, a forward-looking statement is accompanied by meaningful cautionary statements thirdly, the statement was made or reaffirmed with a reasonable basis. Finally, the statement was disclosed in good faith. The safe harbor provision of the Private Securities Litigation Reform Act of 1995 created unique rule for oral forward looking statements.If the disclosure of forward looking information would be exempt from taking responsibilities, in addition to the forward-looking statement should meet the provisions of'safe harbor', the process of disclosure must also comply with the Fair Disclosure Regulation and the relevant rules of mandatory disclosure.The U.S. case law is part of the American legal system, the rules created by the U. S. case law that relevant the system of forward looking information are also the US's disclosure system of forward looking information such as the scope of forward-looking statement. The composition of the good faith, the standard of meaningful cautionary statements, the definition of a reasonable basis.The US's disclosure system of forward looking information are comprehensive and sophisticated, we can learn many useful experience from it for completed our disclosure system of forward looking information.