Provisions of the Supreme People's Court on Several Issues concerning Representative Action for Securities Disputes
Provisions of the Supreme People's Court on Several Issues concerning Representative Action for Securities Disputes
Provisions of the Supreme People's Court on Several Issues concerning Representative Action for Securities Disputes
Fa Shi [2020] No.5
July 30, 2020
The Provisions of the Supreme People's Court on Several Issues concerning Representative Action for Securities Disputes, which were adopted at the 1808th Meeting of the Judicial Committee of the Supreme People's Court on July 23, 2020, are hereby promulgated and shall come into effect as of July 31, 2020.
Provisions of the Supreme People's Court on Several Issues concerning Representative Action for Securities Disputes
(Adopted at the 1808th Meeting of the Judicial Committee of the Supreme People's Court on July 23, 2020 and effective as of July 31, 2020)
In accordance with the provisions of the Civil Procedure Law of the People's Republic of China, the Securities Law of the People's Republic of China and other laws and in light of the specific situation of the securities market and trial practice, these Provisions are formulated with a view to further perfecting the securities class action system, facilitating investors to bring and participate in actions, reducing investors' rights safeguard costs, protecting the legitimate rights and interests of investors, effectively punishing acts in violation of laws and regulations in the capital market, and maintaining the sound and stable development of the capital market.
I. General Provisions
Article 1 For the purpose of these Provisions, representative action for securities disputes includes ordinary representative action and special representative action caused by misrepresentation, insider trading, market manipulation and other acts in the securities market.
Ordinary representative action refers to actions brought in accordance with the provisions of Articles 53 and 54 of the Civil Procedure Law and Paragraphs 1 and 2 of Article 95 of the Securities Law; special representative action refers to actions brought in accordance with the provisions of Paragraph 3 of Article 95 of the Securities Law.
Article 2 Cases of representative action for securities disputes shall be under the jurisdiction of intermediate people's courts or special people's courts of cities where people's governments of provinces, autonomous regions and municipalities directly under the Central Government are located, cities specifically designated in the state plan and special economic zones.
Actions brought against multiple defendants shall be under the jurisdiction of intermediate people's courts or special people's courts with jurisdiction in the places where issuers are domiciled; actions brought against subjects other than issuers shall be under the jurisdiction of intermediate people's courts or special people's courts with jurisdiction in the places where the defendants are domiciled.
Cases of special representative action shall be under the jurisdiction of intermediate people's courts or special people's courts in the places where securities exchanges of centralized securities trading involved in actions or other national securities trading places approved by the State Council are located.
Article 3 People's courts shall give full play to the functions of diversified dispute resolution mechanisms, guide and encourage the parties concerned to settle their securities disputes in line with the principles of voluntariness and legality and through administrative mediation, industrial mediation, professional mediation and other non-litigation means.
If the parties concerned choose to settle their disputes through litigation, people's courts shall file their cases in due time. Mediation shall be emphasized in the case trial process.
Article 4 When trying cases of representative action for securities disputes, people's courts shall leverage informatization technical means to carry out case registration, service of litigation documents, announcement and notification, rights registration, issue of execution funds and other work, so as to facilitate the parties concerned to exercise their litigation rights and fulfill their litigation obligations and to improve the fairness, efficiency and transparency of trial execution.
II. Ordinary Representative Action
Article 5 If the following conditions are met, people's courts shall apply the procedures of ordinary representative action to try cases:
1. there are more than ten plaintiffs and the actions meet the provisions of Article 119 of the Civil Procedure Law and the conditions for joint action;
2. two to five prospective representatives are determined in the indictment and they meet the requirements for representatives as specified in Article 12 of these Provisions; and
3. the plaintiffs submit preliminary evidence that can prove the fact of securities infringement, including relevant administrative punishment decisions, criminal judgment documents, confession materials from defendants, and disciplinary sanctions meted out or self-regulatory measures adopted by stock exchanges and other national securities trading places approved by the State Council.
If a case is not in conformity with the provisions of the preceding paragraph, the people's court shall apply the non-representative action procedures to try it.
......
Fa Shi [2020] No.5
July 30, 2020
The Provisions of the Supreme People's Court on Several Issues concerning Representative Action for Securities Disputes, which were adopted at the 1808th Meeting of the Judicial Committee of the Supreme People's Court on July 23, 2020, are hereby promulgated and shall come into effect as of July 31, 2020.
Provisions of the Supreme People's Court on Several Issues concerning Representative Action for Securities Disputes
(Adopted at the 1808th Meeting of the Judicial Committee of the Supreme People's Court on July 23, 2020 and effective as of July 31, 2020)
In accordance with the provisions of the Civil Procedure Law of the People's Republic of China, the Securities Law of the People's Republic of China and other laws and in light of the specific situation of the securities market and trial practice, these Provisions are formulated with a view to further perfecting the securities class action system, facilitating investors to bring and participate in actions, reducing investors' rights safeguard costs, protecting the legitimate rights and interests of investors, effectively punishing acts in violation of laws and regulations in the capital market, and maintaining the sound and stable development of the capital market.
I. General Provisions
Article 1 For the purpose of these Provisions, representative action for securities disputes includes ordinary representative action and special representative action caused by misrepresentation, insider trading, market manipulation and other acts in the securities market.
Ordinary representative action refers to actions brought in accordance with the provisions of Articles 53 and 54 of the Civil Procedure Law and Paragraphs 1 and 2 of Article 95 of the Securities Law; special representative action refers to actions brought in accordance with the provisions of Paragraph 3 of Article 95 of the Securities Law.
Article 2 Cases of representative action for securities disputes shall be under the jurisdiction of intermediate people's courts or special people's courts of cities where people's governments of provinces, autonomous regions and municipalities directly under the Central Government are located, cities specifically designated in the state plan and special economic zones.
Actions brought against multiple defendants shall be under the jurisdiction of intermediate people's courts or special people's courts with jurisdiction in the places where issuers are domiciled; actions brought against subjects other than issuers shall be under the jurisdiction of intermediate people's courts or special people's courts with jurisdiction in the places where the defendants are domiciled.
Cases of special representative action shall be under the jurisdiction of intermediate people's courts or special people's courts in the places where securities exchanges of centralized securities trading involved in actions or other national securities trading places approved by the State Council are located.
Article 3 People's courts shall give full play to the functions of diversified dispute resolution mechanisms, guide and encourage the parties concerned to settle their securities disputes in line with the principles of voluntariness and legality and through administrative mediation, industrial mediation, professional mediation and other non-litigation means.
If the parties concerned choose to settle their disputes through litigation, people's courts shall file their cases in due time. Mediation shall be emphasized in the case trial process.
Article 4 When trying cases of representative action for securities disputes, people's courts shall leverage informatization technical means to carry out case registration, service of litigation documents, announcement and notification, rights registration, issue of execution funds and other work, so as to facilitate the parties concerned to exercise their litigation rights and fulfill their litigation obligations and to improve the fairness, efficiency and transparency of trial execution.
II. Ordinary Representative Action
Article 5 If the following conditions are met, people's courts shall apply the procedures of ordinary representative action to try cases:
1. there are more than ten plaintiffs and the actions meet the provisions of Article 119 of the Civil Procedure Law and the conditions for joint action;
2. two to five prospective representatives are determined in the indictment and they meet the requirements for representatives as specified in Article 12 of these Provisions; and
3. the plaintiffs submit preliminary evidence that can prove the fact of securities infringement, including relevant administrative punishment decisions, criminal judgment documents, confession materials from defendants, and disciplinary sanctions meted out or self-regulatory measures adopted by stock exchanges and other national securities trading places approved by the State Council.
If a case is not in conformity with the provisions of the preceding paragraph, the people's court shall apply the non-representative action procedures to try it.
......