Conditions for claims for misrepresentation, legal consequences of misrepresentation

1. Identity and qualifications.

There are three types of investors who can claim compensation: natural persons, legal persons or other organizations, in other words, in addition to shareholders, institutional investors with legal personality and other institutional investors without legal personality have the status to make claims.

2. Conduct qualifications.

To be eligible for a claim, investors must meet the following criteria:

1.After the date of the misrepresentation;

2.Selling not in full before the misrepresentation is revealed or corrected by the listed company;

3.Investors who have lost money due to their investment in the corresponding ** during the above time period cannot claim for profit.

4.The investor is a ** or sell transaction completed in the "primary market", "secondary market" or "** company agency share transfer market", excluding transactions formed by agreement transfer;

5.Investors incur losses due to misrepresentation in the above transactions, except for losses caused by systemic risks.

3. Statutory preconditions.

The administrative penalty decision of the CSRC and the Ministry of Finance or the criminal judgment of the people's court that has taken effect determines that the listed company has made false statements.

Investors who meet the "status qualifications" and "conduct qualifications" for listing may file a claim lawsuit after the statutory preconditions have been fulfilled and before the statute of limitations expires.

**Elements of a dispute over liability for misrepresentation.

The information disclosure obligor violates the laws and regulations, specifically referring to: making false records or misleading statements about major events that violate the truth in the process of issuance or trading, or material omissions or improper disclosure of information when disclosing information.

There is a causal relationship between the damage suffered by the investor and the misrepresentation, and the main criteria for judging are:

1) The investor is investing in ** that is directly related to the misrepresentation;

2) The investor has made a false statement on or after the date of implementation, and before the date of disclosure or correction;

3) The investor incurs a loss due to the sale of the ** or the loss due to the continuous holding of the ** on or after the date of disclosure of the misrepresentation or the correction date.

Legal Analysis: Legal Consequences of False Statements: If a party makes a false statement at trial, according to the relevant laws of China, if it is a civil case, it is an act of obstruction of justice, and the people's court can impose a fine or detention according to the severity of the circumstances; where a crime is constituted, criminal responsibility is pursued in accordance with law.

Legal basis: Article 111 of the Civil Procedure Law of the People's Republic of ChinaObstruction of Judicial Conduct Where litigation participants or other persons exhibit any of the following conduct, the people's courts may impose fines or detention on the basis of the severity of the circumstances; where a crime is constituted, criminal responsibility is pursued in accordance with law.

1) Fabricating or destroying important evidence, obstructing the people's court's trial of a case; (2) Using violence, threats, or bribery to prevent witnesses from testifying, or instigating, bribing, or prudently coercing others to give false testimony; (3) Concealing, transferring, selling, or destroying property that has been sealed or seized, or property that has been inventoried and ordered to be kept, or transferring property that has been frozen; (4) Insulting, slandering, framing, beating, or retaliating against judicial personnel, litigation participants, witnesses, translators, evaluators, inquest personnel, or persons assisting in enforcement; (5) Using violence, threats, or other methods to obstruct judicial personnel from performing their duties; (6) Refusal to perform on a judgment or ruling of a people's court that has already taken legal effect. People's courts may fine or detain units that exhibit any of the conduct provided for in the preceding paragraph; where a crime is constituted, criminal responsibility is pursued in accordance with law.

Legal analysis: 1. Identification criteria: denial of the existence of objective facts, false statements of intent, and purposeful litigation fraud; 2. Legal consequences: fines and detention according to the severity of the circumstances; where a crime is constituted, criminal responsibility is pursued in accordance with law.

Legal basis: Article 111 of the Civil Procedure Law of the People's Republic of China: Where litigation participants or other persons commit any of the following acts, the people's courts may impose fines or detention based on the severity of the circumstances; where a crime is constituted, criminal responsibility is pursued in accordance with law.

1) Fabricating or destroying important evidence, obstructing the people's court's trial of a case;

2) Using violence, threats, or bribery to prevent witnesses from testifying, or instigating, bribing, or coercing others to give false testimony;

3) Concealing, transferring, selling, or destroying property that has already been sealed or seized, or property that has been inventoried and ordered to be kept, or transferring property that has been frozen;

(4) Insulting, slandering, framing, beating, or retaliating against judicial personnel, litigation participants, witnesses, translators, evaluators, inquest personnel, or persons assisting in enforcement;

(5) Using violence, threats, or other methods to obstruct judicial personnel from performing their duties;

(6) Refusal to perform on a judgment or ruling of a people's court that has already taken legal effect. People's courts may fine or detain units that exhibit any of the conduct provided for in the preceding paragraph; where a crime is constituted, criminal responsibility is pursued in accordance with law.

The legal consequence of a false statement is that if it is a civil case, it is an act of obstruction of justice, and the people's court may impose a fine or detention according to the severity of the circumstances.

If the false statement constitutes a crime, criminal liability shall be pursued in accordance with law.

The conduct that would be found to be a false statement involves forging or altering evidence to prove its claim; After the burden of proof has been fulfilled for the facts asserted by the opposing party, the legal relationship and corresponding facts are still fabricated to make a defense; The statement of the facts of the case is inconsistent.

1. There are major contradictions and no reasonable explanation can be made; concealing that the other party has fulfilled some or all of its obligations and cannot make a reasonable explanation when asserting its own rights; Recusal from stating the facts of one's own involvement, or the facts that one knows or should know, does not know, does not remember, etc., and cannot make a reasonable explanation; refusing to express an opinion on the authenticity of their signature or sealed documentary evidence, and refusing to express an opinion after the adjudicators have explained the legal consequences; Where there is other documentary evidence that has sufficient evidence to mutually corroborate the authenticity of the documentary evidence, but still apply for appraisal and obstruct the litigation; Where a court is still requested to investigate and collect evidence that is already in possession or should be in possession, and a reasonable explanation cannot be made, as well as other methods that obstruct civil litigation activities through means such as statements or applications and cannot make a reasonable explanation.

Civil Procedure Law of the People's Republic of China

Article 115:Where parties maliciously collude with each other in an attempt to infringe upon the lawful rights and interests of others through methods such as litigation or mediation, the people's courts shall reject their requests and give fines or detention based on the severity of the circumstances; where a crime is constituted, criminal responsibility is pursued in accordance with law. Article 116:Where persons subject to enforcement maliciously collude with others to evade performance of obligations set forth in legal documents through methods such as litigation, arbitration, or mediation, the people's courts shall give fines or detention based on the severity of the circumstances; where a crime is constituted, criminal responsibility is pursued in accordance with law. Article 117:Where units with an obligation to assist in investigation or enforcement exhibit any of the following conduct, the people's courts may impose fines in addition to ordering them to perform their obligation to assist:

1) The relevant unit refuses or obstructs the people's court's investigation and collection of evidence;

2) After receiving the people's court's notice of assistance in enforcement, the relevant unit refuses to assist in making inquiries, seizing, freezing, transferring, or selling property;

3) After receiving the people's court's notice of assistance in enforcement, the relevant unit refuses to assist in withholding the judgment debtor's income, going through the formalities for the transfer of relevant property rights and licenses, or transferring the relevant tickets, licenses, or other property;

4) Other refusals to assist in enforcement.

People's courts may fine units that exhibit any of the conduct provided for in the preceding paragraph on their principal responsible persons or directly responsible personnel; Those who still do not perform their obligation to assist may be detained; and may submit a judicial recommendation for disciplinary punishment to the Supervision Organs or relevant organs.

The people's courts may impose fines or detention on the basis of the severity of the circumstances; where a crime is constituted, criminal responsibility is pursued in accordance with law.

Article 111 of the Civil Procedure Law, where litigation participants or other persons commit any of the following acts, the people's courts may impose fines or detention on the basis of the severity of the circumstances; where a crime is constituted, criminal responsibility is pursued in accordance with law.

1) Fabricating or destroying important evidence, obstructing the people's court's trial of a case;

2) Using violence, threats, or bribery to prevent witnesses from testifying, or instigating, bribing, or coercing others to give false testimony; People's courts may fine or detain units that exhibit any of the conduct provided for in the preceding paragraph; where a crime is constituted, criminal responsibility is pursued in accordance with law.

In court, parties who make false statements or violate good faith will be severely punished by law, and where parties maliciously collude with each other in an attempt to infringe upon the lawful rights and interests of others through litigation, mediation, or other means, the people's court shall reject their request and impose fines or detention based on the severity of the circumstances; where a crime is constituted, criminal responsibility is pursued in accordance with law.

Article 112 of the Civil Procedure Law of the People's Republic of China stipulates that where parties maliciously collude with each other in an attempt to infringe upon the lawful rights and interests of others through litigation, mediation, or other means, the people's court shall reject their request and impose a fine or detention according to the severity of the circumstances; where a crime is constituted, criminal responsibility is pursued in accordance with law.

Article 113 stipulates that where the person subject to enforcement maliciously colludes with others to evade the performance of the obligations set forth in the legal documents through litigation, arbitration, mediation, or other means, the people's court shall impose a fine or detention on the basis of the severity of the circumstances; where a crime is constituted, criminal responsibility is pursued in accordance with law.

Article 115 stipulates that the amount of a fine imposed on an individual shall not exceed RMB 100,000. The amount of the fine imposed on the unit shall be between RMB 50,000 and RMB 1,000,000.

The period of detention is not more than 15 days.

Article 307 of the Criminal Law of the People's Republic of China: Whoever uses violence, threats, bribery, or other methods to prevent witnesses from testifying or instructs others to give false testimony is to be sentenced to up to three years imprisonment or short-term detention; where the circumstances are serious, the sentence is between three and seven years imprisonment.

Where parties are assisted in destroying or fabricating evidence, and the circumstances are serious, a sentence of up to three years imprisonment or short-term detention is to be given.

Where judicial personnel commit the crimes in the preceding two paragraphs, they are to be given a heavier punishment.