The Comparison And Study On Securities Class Action System

This thesis studies the issues of security related class action based on the comparative method and the approach to economic analysis. In the first chapter, the author illustrates the concept and characteristics of securities class action system. By comparing it with the joint action system in China, it furthers the understanding of class action concept and analyzes its effectiveness. Lastly, the thesis presents its points by describing the history and current state of the securities class action systems in the States and in China.The second chapter focuses on the analysis of substantive law of security class action lawsuits. First of all, it analyzes the procedural right in substantive law and demonstrates that besides the right of civil relief explicitly indicated in the legislation, it should also be granted the implicit procedural right through explaining of the law. This right is especially important in China. It then elaborates that in case of stock fraud, who may be the plaintiff and who may become the defendant, and the positions of each party. This chapter mainly examines three types of cases, namely wrong disclosure of information, inside trade, and market manipulation.The third chapter is the analysis of the substance of procedural law in security class action. It mainly evaluates the differences between class action and other civil procedures. The author deduces the issues into three phases, namely the opening of the lawsuit, including the conditions of the class action, the requirements on the representatives, the notified issues on hand, and the rights of other class action members; the proceeding of the lawsuit, exploring the control of the lawsuit by the judge, mostly on the supervision of the representatives and the examination of the reconciliation agreement; and the settlement of the lawsuit, discussing the legal binding of the lawsuit verdict.In the last chapter, the author briefly summarizes the article. At the same time, he brings out some suggestions and thoughts primarily consisting of two factors: first, to establish a system of stock fraud lawsuit from a practical point of view; and second, the thoughts on the supervision of the stock market.