The Protection Of The Right Of The Litigation Of The Medium And Small Investors In The Case Of The Security Fraud

The opening place for trading stocks in China including Shanghai stock exchange and Shenzhen stock exchange, if the company once successfully listing in stock market, it will raise found from numerous social investors, in other words, the sale of the company’s stock, generally by the securities company, and common stock investors may purchase the stock through the securities company. In 1998, however the first false statement case of a listed company happened in China, namely the Hongguang industrial co., LTD. made up product sales, inflated products, even in the stock market, keep doing serious irregularities, and hidden from investors, when such things being exposed, numerous investors sue to the court but be rejected, then investors who owned a little stocks lost a family fortune in Yi An technology co., LTD case because the company stock price manipulation, Oriental electronic case. Oriental electronic case, Everbright securities case are also typical among the securities market for listed companies or securities company’s securities fraud in investors’ rights and result in interest damage, and meanwhile, at the same time, when securities investors sue to the court, they did not get really successful, there are even some investors was ruled by the court of dismissal of action in the prosecution stage,so investors right of action was not given due protection. I noticed this problem, so writing this article, starting from some basic rules that can explore the suit right of the investors of the security system change, the purpose of this article is to draw lessons from western class action and public interest litigation in our country to explore how to rely on the system innovation to protect the litigation right of investors who owned a little stocks, and can be carried out in practice. In this paper, besides introduction and conclusion, include four chapters.In this paper, the first chapter is mainly to describe the present situation of protecting minority investors in our stock market through case and regulations, securities market is developing fast now in our country, the exchange volume and turnover are rising every day, but the investors rights and interests are damaged, and also the influence spread wide, it’s a pity that laws and regulations of protecting investors who owned a little stocks did not timely follow-up, investors even was rejected by the court in the prosecution stage, explain the basic concept, and chose of the tort liability between contract liability and tort liability, because the securities fraud behavior of listed companies or securities company caused the social harm and stock market turmoil which has far more negative effects than the effects of default, and if define this kind of fraud as a default, It would have the party in fault escape bearing civil liability, on the contrary, defining its behavior as tort, then it need to bear civil liability to pay compensation which is greater than the former, and can play a better deterrent effect to the society.The second chapter, first analyzes some defects existing in the legal system in our country, and divided into two aspects, the first part is our country’s representative lawsuit regime has some defects existing in the system design, which result to its low utilization rate, in addition the jurisdiction and the scope of accepting cases of the court.The third chapter In the analysis of some defects in the legal system of our country, the author learn from the class action of abroad to solve mass disputes opt-out mechanism and contingent fee system and the relevant laws and regulations of environmental public interest litigation in our country.The fourth chapter is Suggestions to perfect our regulations in relevant field, including three aspects, the first part is about the rules of the party of litigation, expand the scope of field and empower investors opt-out treatment, the second aspect is to perfect the court relevant rules, set of such cases under the jurisdiction of high people’s court, and the Court of Second Instance is the Supreme Court; Secondly to enlarge the scope of accepting cases of the court, the fraud of the other two types of false statements and market manipulation. The third aspect is related to the third party, to build a contingent fee system and case reporting system.