Legal Issues Study About Illegally Increasing Holdings Of Shares

Since June 2010 the stock market hit the highest point of 5178.19,only 20 trading days plunging to 3373 points,the crash rate around 35%,which made many market participants miserable.With the A-share market continued to fall,part of the listed company's share price has come to historical position.Relatively low costs triggered a wave of acquisition of listed companies.There were more and more illegally increasing holdings of shares in secondary market and there are 112 listed companies were illegally increased in 2016.Illegally increasing holdings of shares in capital market are beneficial for allocation of resources of capital market and finding the value of listed companies,but illegal phenomena frequently happened even for the control right of listed companies.From the Shanghai Xinmei,to Tibet tourism,Chengdu Road and Bridge,and then to Kondarl,and then to Vanke,a series of disputes show that illegal increase is not conducive to the stability of China's securities market,violating the principles of openness,fairness and notarization,and damaging the social and public interests.However,China's illegal acts for the placards only suffer a maximum penalty of 600,000 yuan in administrative penalties and there is no corresponding legal responsibility for the "slow" period of the sale or sell listed companies in the stock.Based on the qualitative analysis of the behavior of illegally increasing holdings of shares in China,this paper tries to find out the insufficiency of the legal liability regulation of the behavior and the further improvement plan based on the practical analysis of the legal liability.This article mainly from the following three parts to discuss the legal issues of illegally increasing holdings of shares.The first part is a general analysis of the behavior of illegally increasing holdings of shares.This part firstly analyzes the connotation of the system of holdings and the value of the system,and through the analysis we can draw the conclusion of the importance of establishing a perfect disclosure system of holdings.Then it introduces holdings disclosure of holdings of the United States,France and Korea through the comparative law,and introduces relative holdings disclosure of holdings in China,and sums up the differences of the large shareholding system in each country.Through the first chapter we can pave the way for the following narrative theory.The second part defines the behavior of illegally increasing holdings of shares.The author from constituent elements of the dishonest description,inside trade,and market control to define the behavior of illegally increasing holdings of shares.Breach of disclosure information is consistent with the composition of dishonest description,and "slowly walking" period holdings of shares is in line with the composition of insider trading elements.The third part is the illegally increasing holdings of shares behavior's regulation measures.This part is divided into two parts.Firstly,it analyzes the administrative responsibility.Through the collection of 14 cases of administrative penalty,the author finds out the shortcomings of the punishment.For the increasing holding of shares in the period of “slowly walking”,regulatory authority should limit its voting right and then order to sell in secondary market.Secondly it analyzes the civil liabilities of illegally increasing holdings of shares by identifying four cases of civil disputes,to find out the focus of civil disputes,and then perfect civil liability by learning from the civil liability of dishonest description.