Can Investors Service Center Wear Armor For Investors?

The semi official identity of Investor Service Center can effectively avoid local protectionism in capital market litigation and reduce the cost of safeguarding investors' rights. It is an ideal public interest litigant.

The high cost and long duration of China's capital market are often deterred by investors. The official identity of the investor service center can minimize the administrative interference of local governments. It also allows large shareholders of listed companies to lower their arrogant forehead, which is more conducive to obtaining judicial relief for investors and better obtaining civil compensation, so it is the best candidate for public interest litigation.

With a registered capital of 60 billion yuan, the main responsibility is to provide education, law, information and technology services for small and medium-sized investors to exercise their rights and rights in the form of shareholder rights. A dispute resolution service provided by small and medium-sized investors, such as mediation, has been learned exclusively by journalists. For the three jurisdictions of Shanghai, Hunan and Guangdong (excluding Shenzhen), which are approved by the SFC to approve shareholding exercise, the center has bought and held 493 of the listed companies, accounting for 93% of the total number of 528, exercising the rights of shareholders such as questions, proposals and voting rights, becoming the protector of the interests of small investors, but the author thinks that the center can play a greater role in the process of investor investment due to misrepresentation and other losses. Investor Service Centre was established in December 5, 2014.

The loss is also more common, the legal provisions are also more perfect, the investor claims the probability of success is also bigger, but because the small and medium investor's stock ownership is not many, the absolute loss is not many, adds the lawsuit to adopt the representative system, the procedure is more troublesome, the lawsuit time is long, the rights protection cost is higher, causes many investors to not initiate the lawsuit, thus causes oneself to encounter the unjust injustice, also has helped the illegal offender's arrogant arrogance, the new Beijing newspaper commentary has provided a set of heartbreaking data, the overwhelming majority of investors choose to own the bad luck to give up the rights and interests, in the Nanfang share finance fraud case, involves the stockholder nearly 16 thousand, but the real rights protection shareholder is less than 1%, and more than 99% shareholder "vacancy". In China, misrepresentation is more common, and investors encounter.

Nanfang share price is not high, and investor losses may not be great. But recently, Andrew information, which has high absolute share price, may suffer more investment losses. If investors give up compensation, they can only admit their bad luck, encourage their illegal abuses with their abject poverty, and the stock price of security information falls from the highest 474 yuan. In June 15th, the trading limit was only 47.19 yuan (not yet reinstated), and the investors involved in it suffered heavy losses.

Andrew information continued to plunge after May 13, 2015, to August 16th, the cumulative decline of 68.31%, the market value evaporated nearly 70%, and its announcement was filed after investigation, just 12 trading days, the stock price fell more than 46.66%.

The location of the information is just one of the three pilot districts in Shanghai, Hunan and Guangdong (excluding Shenzhen).

The center can play a greater role in the process of investor rights claim. One is to use its strong position to convene the largest shareholder of listed companies and its senior shareholders and representatives of small and medium investors, and strive for maximum compensation for investors through mediation. This is a minimum cost way of safeguarding rights. According to the relevant persons, the probability of successful mediation is relatively high. The Investor Service Center began to formally conduct dispute mediation in October 2014. By the end of 2014, 182 cases were handled by the court or the parties concerned, including 85 cases of mediation ended, 83 successful cases, 98% mediation success and 10 million 138 thousand Yuan mediation. Investors involved in the case have expanded to 17 provinces and cities in Beijing, Shanghai, Guangdong, Zhejiang and other provinces, and have been widely praised by small and medium-sized investors. Therefore, I think investor service.

It is natural to be able to succeed in mediation.

It can also play a greater role in leading the small and medium-sized investors to join the rights lawyer to prosecute the court and seek legal settlement. One is judicial mediation, and the first intermediate people's Court of Shanghai and the small and medium-sized investors service center limited liability company and the Shanghai Securities Regulatory Commission held the ADR cooperation signing ceremony.

The signing of the cooperation agreement on the multi resolution mechanism for disputes between securities and futures is called ADR, ADR Alternative, Dispute Resolution. It originated from the way of dispute resolution in the United States, generally plated as "non litigation dispute resolution procedures".

Major now

The way is: mediation, mediation, moot court, expert ruling, etc. this agreement is signed, which is conducive to completing the investor's claim through the judicial mediation of the court. However, if the ordinary investor fails to do so, only the center can make it, though the cost is higher than the administrative mediation, but it is lower than the civil lawsuit. If the judicial mediation fails, the investor service center can also seek civil action to complete the final effort and initiate the public interest litigation.

According to the people concerned, for the serious fraud and damage to the interests of small investors, the center will bring shareholder derivative litigation to major shareholders of the company.

But the derivative action is attributable to

All but not two level market investors, I agree with the opinion of an expert, hope that the center can become a plaintiff in the public interest litigation, and there are many infringement cases in the stock market, which infringes hundreds of thousands of investors' rights and interests. If the plaintiff can be taken as the plaintiff by the service center, it can reduce the cost of litigation and improve the efficiency of dispute resolution. At the same time, it can maximize the participation of small and medium-sized investors in obtaining judicial relief. At the same time, deterring the dishonest people in the securities market, putting the shareholder's representative litigation into the center can reverse the embarrassing rights of the shareholders to "recover a chicken and kill a cow first", which will become an important step to promote the modernization of capital market governance.

Public interest litigation is not the same as class action mechanism. If you do not object, once the winning investor can get compensation, because the representative system is adopted in our civil action, the investor service center can not initiate class action. It can only initiate public interest litigation through the way of soliciting investors. Based on the strong position of the Investor Service Center, the appeal force is not equal to the general rights lawyer. Once the public interest litigation can be launched, it will be recognized by the small and medium-sized investors and widely responded. It will also give corresponding legal authorization, effectively change the historical dilemma of investors in the claim, and take a solid and encouraging step to safeguard their legitimate rights and interests.