On The Improvement Of Securities Class Action Lawsuits In China

At the end of 2019 through the “securities law” amendment under paragraph 3 of article 95 of the established and important system in the field of securities civil disputes in China,namely the investor protection institutions should be representative of the “tacit joining and explicit quitting ” securities group lawsuit system.It is the fist time for the system giving the investor protection institutions as a representative of the group litigation,which is a great innovation of securities class action system in China.On July 31,2010,the supreme people’s court issued the regulations on several issues concerning representative lawsuit of securities disputes,which further pushed the litigation system of securities group to the application level.The establishment of the system will be conducive to the representative litigation system reform,strengthening the protection of investors.Meanwhile,it is of great practical significance to standardize securities behavior,stabilize the order of securities market and study the litigation system of securities group deeply.Courts and investor protection institutions began to use group action to solve large securities disputes to make the securities group action system in China smoothly spread.In order to ensure the smooth operation of the system,we can learn from the "Op-out" mechanism in American group litigation and the "insurance center" in Chinese Taiwan group litigation,improve the deficiencies in the securities group litigation system,and form the securities group litigation system with Chinese characteristics in line with China’s national conditions.The thesis analyses that there are some problems in the operation of securities group litigation in China,such as imperfect procedural rules of withdrawal system,imperfect agency system of investor protection agency and vague agency rules of lawyers in securities group litigation.It is suggested to refine the rules for the withdrawal and retreat of group members,implement efficient announcement procedures and complete notification procedures of "tacit joining and explicit quitting".The legal responsibilities of investor protection institutions should be clarified,and the procedural rules of investor protection institutions participating in group litigation should be improved to improve the agency mechanism of investor protection institutions.Defining the position of the lawyer,developing the lawyer to become the subject of group litigation,determining the right to represent the individual members of the group litigation,giving them the right to investigate and know in the litigation,and finally allowing them to participate in the trial debate and the right to supplement the defense in order to construct the mechanism of the lawyer acting for the securities group litigation.Only in this way can we further strengthen the application of group litigation in the field of securities,improve the handling capacity of courts and investor protection institutions,and protect the rights and interests of Chinese investors.