Conflicts And Coordination Between The Information Disclosure System In Gem And Trade Secret Protection System

In order to prevent the risks in security markets, informationdisclosure system requires the listed companies to disclose relevantinformation to the investors and the security markets truthfully,correctly, completely, timely and fairly to protect the interests of vastinvestors. However, some trade secrets may be involved within theinformation disclosed by the listed companies who would carry out tradesecret protections for their own sake. Therefore, the conflicts betweenthe implementation of information disclosure system and trade secretprotection arise, especially in the information disclosure system forlisted companies on GEM where the requirements of the informationdisclosure are rather stricter, which results in more intense conflictsbetween the implementation of information disclosure system and tradesecret protection system.Although there are conflicts between the two systems, there alsoexists coordination between them. The primary aim of information disclosure system is to protect the interests of investors while tradesecret protection system take the interests of listed companies into thetop consideration. In spite of their different primary aims, the deep aimof both is to maintain the public interest and market order and theultimate aim is to improve the development of socialist market economy.Therefore, there is possibility of the coordination between these twosystems.With regard to the methods for the coordination, it is advised to startfrom the limitation of boundary between the information to be disclosedand trade secrets to reduce the overlapping parts of two systems, so asto mitigate the conflicts between them. Contradiction rules of publicinterest should be carried out in the boundary limitation of the contentsof trade secrets, while appropriate principle should be carried out inthe boundary limitation of the information to be disclosed. As for thelimits to trade secrets, this thesis mainly targets at the businessinformation and advocates that the certification standards of customerlists in the judicial practice should be referred to when dealing withbusiness information such as information of freight sources and marketingstrategies e. As for the limits to the information to be disclosed, thoseinformation should be deleted that may be concerned with business secretsand at the same time provide little help for investors. And someinformation to be disclosed should be detailed.Towards some specific industries in GEM market, legislators havereleased particular guidelines. For the media production corporation, theinformation to be disclosed has little effect on public interests as wellas investors’ personal interests. From the perspective of interestsbalance, the scope of the information to be disclosed should be limited.For the pharmaceutical companies among them, the pharmaceuticalproductions concern public health. Besides, the current regulation of information disclosure system, especially the information concerningwith drug safety, needs to be greatly improved, it is recommended thatthe relevant theory and practice of pharmaceutical companies in the UnitedStates for the limitation of trade secrets should be learned. The US hasproposed that if pharmaceutical companies need to disclose trade secretsbased on public health grounds, the rights holders of these trade secretsmust meet many conditions so as to be waived from disclosure obligations.Finally, the author suggests that the protection of information about drugsafety of pharmaceutical companies can be restricted with regard to thecriteria established by the American judicial practice, and thesituations of in-time reporting on drug safety need to be increased inthe current guidelines of information disclosure of the pharmaceuticalcompanies.