Gem Is Delisting Investor Protection

Shenzhen Stock Exchange GEM listed company intends to implement a direct mechanism for delisting and rapid exit from the fundamental protection of the interests of investors, withdraw from the market system needs fundamental changes necessary follow-up mechanisms of judicial protection, in particular, to establish a sound post-delisting Judicial Remedies of investors.In the second and third chapters of the Securities Litigation judicial remedy of the plaintiff and the defendant of the main characteristics of the main analysis. The number of small investors more than the principal plaintiff, widespread distribution, high cost of separate litigation, the judicial remedy aid dependency is high; the plaintiff in litigation ability of institutional investors, can be added to judicial remedy if the proceedings can be used as a major force in favor of The whole proceedings. The main body of the GEM as the defendant delisting company, the investors in the securities fraud, false statements or insider trading and other illegal activities, but more difficult to collect evidence the plaintiff, the adverse position in the litigation. Defendants jointly and severally liable and subject as a major shareholder, chairman of the board of listed companies, management and third-party organizations, the current situation, its law very low cost, professional, in the collection of evidence of absolute advantage.In the fourth chapter the experience of foreign judicial remedy system, the U.S. class action system by "opt out" of the litigation model, higher efficiency, lower cost, more conducive to the large number and widespread protection of interests of shareholders, but because it belongs to Lawyer-driven, sometimes resulting in abuse complaints, is not conducive to the protection of listed companies; Germany and Taiwan group litigation system used by special legislation to give certain special groups to the right to appeal, so that it can bring the name of the group and to participate in the proceedings, maintaining group members Interest; selected representative action system used in Japan, from the majority of people with common interests for all the common interests of the elected in the proceedings. Select a representative group litigation, and litigation is relatively strict, to avoid the abuse complaints, but less efficient.Speaking from the legislative level, the proposed introduction of the SFC, "the implementation of the GEM delisting tort liability management approach, "or by the Supreme People's Court and then draft a "tort cases on the Securities System of the details of the provisions of judicial remedy"; that would make securities Tort litigation will be more a group of more operational.I suggested to opt out of the U.S. class action suits Opt-Out action mechanism, which greatly improve the comprehensive judicial remedy proceedings, efficiency and economy; suggested in Shanghai, Shenzhen, you can set up a special court of the admissibility of securities litigation, securities dealing Disputes and the realization of judicial remedy. By special courts to handle contact and participate in pre-process, both to avoid malicious litigation and abuse complaints, but also improve the efficiency of litigation. Proposed to relax the "direct stakeholders" of the Standing Theory, and the United States attorney driven some balance.The author also conducted a proposed agency action processes, securities litigation the court may take the initiative, interviews with major shareholders, given the subject of proceedings to establish the views of other investors to vote. Representative is required, can be the best to play by institutional investors, of course, subject to the supervision of the represented. Must address the interests of good relations between the subject of proceedings, the implementation of participating in the proceedings of investors and non-participation in the proceedings of varying amounts of compensation incentives, such people can participate in the proceedings bear the costs of early action, of course, will get more revenue. Between the representative and the represented interests can also have some incentives, such as the litigation is successful, representative of a certain percentage can be extracted as a reward. Diverge after the use of electronic trading software which can be voted, the majority, to as much as possible a unified view.From the expansion in terms of decision effectiveness, the use of opt-out Opt-Out mode, a direct expansion of the verdict is not stated in the agency proceedings to exclude themselves from outside members. And when the proceedings are best to consider and protect against a variety of reasons, but did not participate in the proceedings of investors interests.GEM investment interests in the delisting of judicial remedy system is a very complicated and difficult to operate the system works, but to establish a firm set of systems. Otherwise, our stock market will not be able to implement survival of the fittest, not a virtuous circle. There is a system better than no system, established after the gradual improvement in order to better protect investors and improve China's securities market.