Civil Liability Of Tort For Illegal Acquisitions

Cases of illegal acquisitions have continued to emerge,reflecting loopholes at the legislative level.As the "Securities Law" stipulates the principle of constant trading results,illegal acquisitions in violation of the obligation of disclosure of large amount of shares will not result in invalidation of stock trading,but may infringe on their interests for other stakeholders,such as listed companies,shareholders of listed companies,and stocks.The right to know about the transaction to the other party and the investor,and even the loss of control of the company by the shareholders.Although China's Article 86 of the “Securities Law” stipulates disclosure of large amount of stocks and slow walking obligations,it is difficult to match the responsibilities of the acquisitions people who violate the rules.In addition to the securities regulatory authority's enforcement of warnings,fines,and other administrative penalties for illegal licensed persons,it is also necessary for those who violate the rules to acquisitive to bear civil tort liability."Shanghai Xinmei" as the first case of denouncing illegal acquisitions,analysis of this case has a certain role in the trial of similar cases.Through legislation,it is necessary to clarify the consequences of acquisitions and the manner of responsibility in violation of the "Securities Law." In terms of administrative penalties,the administrative penalties have been greatly increased and their illegal costs have been increased.At the same time,through the interpretation of the "Company Law," in the trial of similar "Xinmei" cases of illegal acquisitions cases,limiting the violation of acquisitions shareholders of the voting rights is more effective means of civil sanctions.