Research On Civil Liability Of Misrepresentation In The Securities Markets

Securities Law which ensure health development of the securities markets is the basic Law.It has been confirmed in different countries and regions that the main purpose of Securities Law is to protect investors'interests by information-disclosing system. Misrepresentation is main performance of illegal acts relating to information disclosure.The situation is very worse. So far, our securities market is filled with misrepresentation, many cases sprang up such as Yinguangxia, Hongguang and so on.They cause great damage to lawful rights and interests of investors.and impede the healthy development of the securities markets.The experience of other countries shows that establishing a perfect civil liability system is an important approach to protect investors'interests. This is also true for China. We made great efforts in this connection, for example, revised< Securities Law>in 2005.But the system still exposes many drawbacks in practice, lagging behind the development of the securities markets and so that many investor are unable to recover the whole of the loss. To establish reasonable Civil liability is very urgent.This thesis is on the basis of foreign advanced theory and legislative experiences, discusses some important issues include performances and concrete identification Criteria of misrepresentation, Principia of Liability, Causation, the scope of damage compensation, preceding procedure and form of prosecution and so on. It also analyzes the deficiency of Civil liability of misrepresentation in the securities law of PRC and advanced some proposal to improve Civil liability of misrepresentation and protect investors'interests from the view of substantive and procedural law.This thesis consists of three parts:the preface, text, and conclusion. And the text contains three chapters.Chapter1, introduces the concept of misrepresentation and its Civil liability.This chapter is divided into two parts. Firstly, introduce the concept and analyzes some characteristics of misrepresentation. Secondly, introduce the concept of Civil liability of misrepresentation. Characteristics and nature of Civil liability of misrepresentation are analyzed.Chapter 2, makes a comprehensive analysis of the constituent elements of Civil liability of misrepresentation. This chapter is divided into four parts. Firstly, analyzes Principal of Liability for different liability subjects. Secondly, analyzes the act of misrepresentation from point of the performances and identification Criterion. Thirdly, analyzes the scope of damage compensation and the method of compensation.Last of all, focus on the relationship between the action of tort and damages. This thesis pointes out that causation in China is the obstacle to protecting the investors and we should learn from the American law to perfect Chinese causation in securities law.Chapter3, discusses the procedural mechanism of Civil liability of misrepresentation. One point of this thesis is that the preceding procedure is very unreasonable and should be abolished. Based on the comparative of Class action of The U.S.A and representative action of China, this thesis puts forward some measures improving the representative action of our country.