Research On The Litigation System Of Securities Special Representative

In recent years,with the rapid development of country’s capital market,a large number of group securities disputes have occurred.In the mass disputes of securities,the number of investors is large,the distribution is wide,the case trial is highly professional,and the cycle is long,so that the litigation benefits obtained by a single investor may not cover the litigation costs paid.In addition,investors are in a weak position in litigation,and their professional capabilities and economic strength are unable to compete with securities infringers,which greatly dampens their enthusiasm to protect their rights through litigation.In order to effectively protect the interests of investors and provide them with effective civil remedies,my country has been actively exploring various group litigation models.Although the representative litigation system has long been incorporated into the law,it has been excluded by legislation in the field of securities infringement;the model judgment mechanism has failed to get rid of the "one-to-one" litigation structure,and cannot solve the problem of insufficient investor motivation to sue under collective action.To this end,the new "Securities Law" in Article 95,paragraph 3,creatively established the securities special representative litigation system,which gives the investor protection agency the legal status to participate in the litigation as a representative,and adopts the rules of "implicit entry,express exit" to include investors who have not explicitly withdrawn from the litigation within the prescribed time limit into the litigation.It can effectively reduce litigation costs,balance litigation strength,and form market deterrence.It has unique institutional advantages,but it is still being implemented.There are still many problems in this regard.The article is divided into four chapters:The first chapter briefly introduces the system background and system connotation of securities special representative litigation,and outlines the litigation subject issues and procedural issues that my country’s securities special representative litigation will face.The second chapter analyzes the subject matter of securities special representative litigation.The first section is based on the legal positioning of the investment service center and the theoretical basis of the investment service center as a representative to justify the subject qualification of the investment service center as a representative.The second section is based on the legal positioning of the investment service center as a public institution,from independence Insufficiency,lack of motivation for public welfare lawyers’ rights protection,and monopoly of litigation initiating entities,analyze the necessity of the investment service center to establish an incentive mechanism.The third chapter analyzes the procedural issues of the securities special representative litigation.This chapter mainly discusses the design flaws of the progressive start-up rules and the implied addition rules.The first section discusses the lack of legitimacy of the pre-procedures and the incomplete selection procedures of the investment service center under the progressive start-up rules.In the case that the scope of case acceptance is limited,the second section discusses the lack of investor rights protection in litigation due to factors such as incomplete notification system,insufficient court supervision momentum,and single dispute resolution under the rules of implied accession.In response to the problems analyzed in Chapters 2 and 3,Chapter 4 has formed a perfect path for securities special representative litigation.First,an incentive mechanism inside and outside the investment service center should be established.By broadening the sources of funds,ensuring the independence of the investment service center in terms of funds and personnel,protecting the rights and interests of public welfare lawyers,and forming effective internal incentives;in addition,by supporting specialized agencies and social organizations in the securities industry,and launching a trial of the lawyer’s risk agency system,the investment The Service Center and its public interest lawyers increase external pressure.Second,we should improve the procedures for the initiation of lawsuits for special representatives of securities.Comply with the development of the securities market and gradually cancel the pre-litigation procedures,replace the "progressive" with a "parallel" initiation method,and improve the selection criteria.Third,we should improve investor procedural safeguards in litigation.On the one hand,learn from the notification system in the US class action,establish a notification method with electronic service as the mainstay,and post and announcement service as a supplement,and improve the content of the notification;on the other hand,make use of the advantages of relevant subjects to form a multi-party coordinated joint supervision System to alleviate judicial pressure;in addition,attention should be paid to case mediation in addition to litigation to form multiple dispute resolution methods.