Article 2 The disputes mentioned herein refers to the contractions or controversies which occur in the equity transactions conducted in the equity transaction institution, and where one party or the third party with stake in the equity transfer deems that the opposite party tot he transaction, other related parties, or the equity transaction institution violates market rules or affects the normal operation and impairs its legitimate rights and interests.
The applicant mentioned herein refers to the party or other relevant party applying for mediation or treatment due to equity controversial matters; the respondent refers to the party directed at in the dispute.
Article 3 The regulations shall be applicable to the case where in the equity transactions conducted in the equity transaction institution, the applicant deems that the actions of the respondent violates regulations, contract, or impairs its legitimate rights and interests, and the applicant thus submits application to the said institution or the regulatory body of the said institution for mediation.
Where the controversial matters affect the continuity of the transaction projects, transaction projects shall be suspended or terminated.
Article 4 The mediation of the equity transaction disputes shall follow relevant laws, regulations, rules and the market rules of the equity transaction institution, on the principle of fairness and justness on voluntary basis of the applicant.
Article 5 The equity transaction institution is the major mediator of the equity transaction disputes, which receives the mediation application of the applicant, verifies the controversial matter, and organize the parties to the dispute to mediate the dispute in accordance with the regulations.
The circumstances where the application for mediation of equity transaction disputes mainly cover:
(A) Controversial matters involving information release contents, transaction procedures, determination of intended transferees, and selection of ways of transactions etc.
(B) Dispute involving the violations of the other party to the transaction;
(C) Nonfeasance or unfair action of the other party to the transaction that impairs the legitimate rights and interests of the applicant;
(D) Other controversial matters that the equity transaction institution considers receiving.
Article 6 The regulatory body of the equity transaction institution shall supervise the dispute mediation conduced by the said institution, accepts the application for the dispute mediation involving the said institution or the application in which the said institution is the applicant, investigates and verifies relevant situations, and follow the regulations to organize the parties for mediation.
Article 7 Where the applicant is the transferor or the intended transferee, it shall entrust a broker member to submit application for dispute mediation; where the applicant is creditor, employee, or other stakeholder, the applicant may entrust a broker member or a law firm to submit application for dispute mediation. Where the agency proposes application for dispute mediation, the agency shall submit the power of attorney of the applicant.
Article 8 Where the applicant makes application for mediation of equity transaction disputes, it shall submit the following materials:
(A) Application for mediation of equity transaction disputes, specifying whether to accept the mediation or not;
(B) Supporting materials of the applicants’ right as principal;
(C) Relevant supporting materials of the controversial matters;
(D) Other materials that the mediation institution deems necessary.
The applicant shall be responsible for the authenticity and validity of the materials, and the agency shall verify the authenticity and validity of the materials, and bear joint and several liabilities.
Article 9 The mediation institution shall, within three working days after receipt of the Application for mediation of equity transaction disputes, make a decision on accepting or not accepting the decision. In case of not accepting the application, the institution shall specify the reasons in the decision on not accepting the application.
Article 10 The mediating institution shall, on the basis of verifying the relevant materials provided by the applicant and relevant matters, promote the parties concerned to resolve conflicts. If the controversial matter does not involve the interests of any third party, and both parties to the dispute accept mediation, the mediation institution may invite both parties to arrive at consensus through negotiation, and form mediation agreement. After the parties and the mediation institution confirms after setting their hands and affixing their stamps to the agreement, the mediation procedures conclude. The time limit for the dispute mediation shall be generally within 30 days after the date of accepting the application for mediation.
Article 11 The said agreement shall include the major contents as follows:
(A) Names, addresses, legal representatives, and other basic situation of the applicant and the respondent;
(B) Controversial matters and applications;
(C) Investigation and verification processes and facts;
(D) Facts, evidence and relevant basis confirmed through mediation;
(E) Mediation opinions;
Article 12 Where, after the application for equity transaction dispute is accepted, no settlement is reached between both parties or both parties are reluctant to accept mediation, the mediation institution shall ratify the controversial matters, and shall propose opinions according to market rules.
Article 13 In the process of mediation of equity transaction disputes, the applicant and the respondent shall have onus probandi for requests or claims, represent facts faithfully, and shall not provide false evidence materials, or conceal or falsify evidence. Where they fail to follow the requirements of the mediation institution to provide relevant evidence, they shall bear the responsibility for evidence failure. Where the applicant fails to provide evidence within the prescribed time limit, it shall be deemed to waive application for dispute mediation.
Article 14 In case of violations of the parties or the refusal of the respondent to execute the agreement on dispute mediation, thereby affecting the normal equity transactions, and causing economic losses to the equity transaction institution or relevant parties to the transactions, corresponding liability for making indemnity for economic losses shall be borne.
Where the party in fault is the intended transferee that has paid deposit, the loss may be deducted from the deposit; where the party in fault is the transferor requiring the intended transferee to pay the deposit, it shall be liable for indemnity with the same amount as the paid deposit.
Article 15 The equity transaction institution shall execute the decision of the regulatory body of the said institution directly on accepting the application for mediation, coordinate and properly handle with other issues in the equity transaction disputes.
Article 16 The regulations come into force as of the date of promulgation.