The Research Of Determining The Day Of Disclosing Misrepresentation

Misrepresentation means the person who has the obligation to disclosure information is in violation of securities laws in the process of the transacting or issuing securities.Misrepresentation is a fraud essentially,which the behavior is aim to enable investors to have false understandings.The day of disclosing misrepresentation means the time disclose misrepresentations.According to judicial interpretation of the Supreme Court, determining the day of disclosing misrepresentation needs three elements,including the object of disclose,the scope of disclose and the time of disclose.The scholars in our country have a more profound understanding and discussion in theory of misrepresentation and compensation method of misrepresentation than the theory of disclosing day which is shortage of systematic and deep study .The question that how to judge the disclosing day has many controversy answers, the court comply with different standards which lacks uniform recognition. I tried to summarize the basic principles and methods though to analyze the case that Wang. v. Company Datang for misrepresentation, as well as other relevant cases.This article is divided into four parts:The first part introduces the case Wang. v. Company Datang. The case includes two points which is the facts of the case and the court finds. In the first point, it introduces the facts that Wang purchased shares of Company Datang which made a misrepresentation and the controversy that which is the disclosing day the day announced the Commission to initiate an investigation to Company Datang or the day announced its receipt of punishment letter. In the second point, it mainly introduced the court finds which and why the day is disclosing day.The second part is the focus of the cases which can be summarized by the facts of the case as the focus, which day is disclosing day ,November 8, 2005 or August 21, 2007? The third part introduces the controversy and differences of opinion, the cause that it's hard to determine disclosing day is lack of unity method and different understanding to the elements in it's concept. First, t whether the contents of disclosing information should be determined; secondly, whether the violent reaction of the market is the necessary condition.The fourth part is the research conclusions, which come out the basic principles should be followed for judging the disclosing day, and makes some analysis to the case that Wang. v. Company Datang,Judging the disclosing day, 1 believe that should follow four basic principles: first, the principle of certainty of information disclosure, disclosure of information is about the alert investors, but only in the information to determine the circumstances, the behavior of investors in order to be considered as predictable,the disclosure of information of significance can be considered to achieve; Second, the market volatility is not a necessary condition, only secondary factors. In the market there are many other factors, the disclosure of information would not inevitably lead to volatility in stocks market; again, for the judge to expose Japan's the requirements of the media elements should be the principle of national media, online media there are exceptions; Finally, in cases of misrepresentation should be allowed to have more than one disclosing day. Not only for different misrepresentations should be allowed to have more than one,but also far the same behavior of misrepresentation.