Theory Of The Civil Liability Of The Company Accounting Information Distortion

Accounting information is of important in market dealing and what’s more it is the basis of securities market to be proceeding in an orderly fashion. Now dealing market and stock market is filled with a large amount of false accounting information, to prevent accounting information distortion has became one of the important areas in legal studies. Many exchangers and investors are mislead by those false accounting informations for their decisions that highly increase the risk of market activity. There are many causes for accounting information distortion, one of the important reasons is lack of a unbroken system of civil liability.The papers is of four parts except the preamble and the conclusion.The first part is about the significance of the civil responsibility of accounting information distortion. Accounting information distortion in private firms is different from public firms, but both of them are very harmful to economics and our society. In order to more effectively keep off accounting information distortion, civil liability for it should be built including compensation, punishment, helping market management and perfecting corporate governance.The second part is about discriminating the nature of civil liability of accounting information distortion. There has been much dispute on the nature of civil liability of accounting infonnation distortion. I submit that it should maximally protect victims’benefits as the principle to confirm the nature of the liability in order to make victims compensated faster and more effectively, and make market’s orders recovered as soon as possible. With regards to the existence of contracts, it is suitable for private corporations to undertake contractual liability and tortious liability for other subjects.The third part is about legal contrasts of civil liability of accounting information distortion. From the appearance of accounting information distortion on that day, it is not a special economical phenomenon of one country but of a vexing problem of every country in the world. The system of civil liabilities of accounting information distortion in USA and Japan are comparatively well-established, moreover, the system of civil liabilities of securities information distortions are most flourishing. It is necessary for us to take roundabout way less to review the shortages of this area in our country and to comb the legislation thoughts and rules of these two countries.The fourth part is key point of this paper. As for the rules of civil liability of accounting information distortion of unlisted companies, only Contracts Law has some provisions, Corporate Law, Accounting Law and other laws have no related provisions. That is one of the realistic reasons why the civil liability of accounting information distortion of unlisted companies is of little importance in the whole system of civil liabilities of corporations’ accounting information distortion. As for the rules of civil liability of accounting information distortion of listed companies in the stock market, some problems such as little amount, weak effectiveness, incomplete subjects, defective procedural mechanism and etc. in Securities Law. It is for so many problems that we should improve the civil liability system of corporations’ accounting information distortion from criterion of liability, constitutive requirement, scope of compensation and lawsuit mechanism in order to guarantee and promote the normal market economy activities.