In China's securities law,red flags are beginning to be used to demonstrate that the party responsible for a securities misrepresentation fails to fulfill the duty of diligence.The introduction of red flags theory helps to optimize the logic of signature-as-liability enforcement and cracks down on violators with scientific precision.However,the application of the red flags theory is still in the preliminary stage in China.The judicial practice of applying the red flags theory in the US securities law helps us better determine red flags and enhances the certainty and predictability of the red flags theory.Although red flags may vary from scenario to scenario and even from person to person,they have certain boundaries.Red flags should be a specific fact that occurs in the issuer's own company,have warning significance,be directly related to the defendant's subjective fault,and reach a certain amount or proportion.Red flags are also a double-edged sword that can not only be used to argue that the defendant fails to exercise the duty of diligence but also be used to defeat less prudent investors who have been voluntarily disclosed by the issuer.
red flagsinformation disclosuremisrepresentationduty of diligencepresumption of fault
国家科技期刊平台
NSTL
万方数据
维普
