Foshan Lighting Claims Cases Waved by Listed Companies

On February 17, Mr. Yan Xiaoli, a partner of Beijing Yingke Law Firm, told the reporter that he had received a large parcel from the Guangzhou Intermediate People's Court, covering nearly 100 applications for jurisdictional objections and courts in Foshan Lighting (000541). award.

On March 6 last year, Foshan Lighting announced that it had received a notice from the CSRC that the company had not disclosed relevant related parties and related transactions related to daily operations in the regular reports and interim reports in 2010 and 2011. Was punished. (This newspaper reported on the B3 version on March 29, 2013.) Since then, several lawyers including Yan Xiaoli have begun to represent Foshan Lighting's shareholder claims.

“The listed company filed a jurisdictional objection against the agent claim filed by me, and the Guangzhou Intermediate People’s Court ruled that the objection was rejected. In fact, the Supreme Court’s jurisdiction over the false statement case has long been clearly stipulated. Does Foshan Lighting not know? , delaying the tactics only." Xiaoli Li expressed dissatisfaction with the behavior of listed companies.

Just for delay
The “Application for Jurisdiction Objection” obtained by the reporter on January 21, 2014 shows that Foshan Lighting believes that the place of infringement and the location of the defendant in this case are both in Foshan City. According to Article 28 of the Civil Procedure Law, the lawsuit brought by the infringement is under the jurisdiction of the people's court of the place where the infringement is committed or the defendant is located. Therefore, the case should be tried by the Foshan Intermediate People's Court.

On February 8, the Guangzhou Intermediate People's Court stated in the civil ruling: "After review, the court considered that the case is a case of liability misrepresentation of securities, and the determination of jurisdiction should apply to civil compensation cases arising from false statements of securities. The special provisions of the Civil Procedure Law on the jurisdiction of infringement cases do not apply to this case."

In fact, Article 8 of the Supreme People's Court's Several Provisions on the Trial of Civil Compensation Cases Caused by False Statements in the Securities Market has long stipulated that the civil compensation cases for false statements of securities shall be listed by the municipalities, municipalities directly under the Central Government, and the municipalities and municipalities of the autonomous regions. And the jurisdiction of the People’s Court of the Special Economic Zone Foshan City is not a separate city or a special economic zone. It should be under the jurisdiction of the Intermediate People's Court of the People's Government of Guangdong Province.

Looking back at the process of filing a jurisdictional objection, Xiaoli Li said that it is very interesting. Foshan Lighting received the lawsuit filed on January 7th, but it was on the last day of the 15-day statutory defense period, that is, January 21, before applying for a jurisdictional objection.

In the opinion of a number of securities activists interviewed by reporters, this is really a subtle "coincidence."

Lawyer Li Xiuzhen, a senior partner of Guangdong Legal System Shengbang Law Firm, said that “the jurisdictional objection is a statutory right, and the previous one has been rejected, but it will be mentioned later.” Obviously, this is not appropriate. This is a regulation to protect the rights of listed companies, and is used by the company as a "tool" for delaying time. To this end, Li Xiuzhen proposed that all attorneys should unite and not make concessions in future litigation and mediation.

Shareholders’ rights must be timely

During the exchange process, several securities rights lawyers reported to reporters that such a situation: because the securities litigation case lasted for a long time, the results were not expected.

Listed companies often take various measures within the space allowed by law, objectively delaying the time to let some shareholders shake, and finally give up prosecution or accept mediation, which undoubtedly reduces the penalties for relevant listed companies.

“The most regrettable thing for securities rights lawyers is that the investors are too late to find a lawyer and missed the last bus of the claim.” Xiaoli said.

Song Yixin, a senior partner of Shanghai Xinwangwenda Law Firm, also said that due to restrictions on information, geography, cost, confidence and trust, investors who initiated voluntary civil compensation for securities will not exceed the loss of rights and meet the conditions for prosecution. 10% of the total number of investors, the total number of indictments will not exceed 5% of the total amount of losses that investors can calculate.

This in turn shows that the illegal cost of illegal violators is actually not very large, so everyone's role in securities civil compensation litigation can not be overestimated and expectations are too large.

In fact, the civil compensation lawsuit for securities is only one link to solve many of the supporting measures in maintaining the order of the securities market and improving the quality of governance of listed companies, and even a link to achieve judicial remedies.

In response to the issue of jurisdictional objections generally adopted by listed companies, Yan Xiaoli said, “In fact, no matter which court is tried, the same facts are based on the same legal basis. The outcome of the trial of the case should have little effect. Jurisdiction is The procedural problem has caused the case to become longer. However, within the statute of limitations, other investors who have not participated in the prosecution can still initiate litigation."

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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