A Study On The Civil Action Claiming For Compensation Concerning Securities Misrepresentation

To build China's civil liability system concerning securities misrepresentation based on the doctrine of justice and China's national conditions is what academia, legal practitioners and legislators should work out together by absorbing tested legal rules,judicial experience and research outputs overseas. The misrepresentation case concerning Daqing Lianyi Oil and Chemical Industrial Company (misrepresentation case) is the first one that has gone through all the phrases of civil proceedings in China. The substantive and procedural elements involved in the misrepresentation case to some degreee demonstrate how China's civil liability system concerning securities misrepresentation functions in the legislative aspect of civil litigation and the challenges facing the current system.Currently, from the perspective of substantive law,China's legislation concerning the civil liability of securities misrepresentation is in position. On the level of procedural law, there exist relatively specific provisions on how to process civil claim for compensation regarding securities misrepresentation. But, when taking all the factors into consideration, China's current legislation concerning securities misrepresentation can not provide enough protection for investors.It is not difficult to find the problems in the fields of legislative ideas and law enforcement when analysing all the substantive and procedural elements in the misrepresentation case by combining China's relevant securities legislation.This paper, on the basis of who has the legal standing to file a suit, how to affirm what constitutes a misrepresentation and how to determine the forms of litigation,discusses China's current civil liability system concerning securities misrepresentation and presents proposals to enhance the system. This paper is composed of 8 parts.Part 1 is introduction which first gives the facts and relevant issues of the case. Then it introduces the thinking behind and the purpose of the paper and puts forward the problems to be discussed.From part 2 to part 7, this paper analyses China's current legislation concerning securities misrepresentation on who has the legal standing to start a action, what constitutes a misrepresentation, how to establish a causal link, how to determine the forms of litigation and how to calculate the loss incurred by combing the facts of the misrepresentation case.Part 8 advances proposals to enhance China's current system by summarizing its weak points on the basis of the misrepresentation case.