Disclosure Obligations Research Articles

Article: Generative Artificial Intelligence and Legal Decisionmaking

This article explores the transformative impact of generative artificial intelligence (GenAI) on legal decision-making processes. It also examines disclosure obligations and the challenges AI-assisted decisions pose in litigation and arbitration.A case study using ChatGPT as arbitrators in the Willem C. Vis International Commercial Arbitration Moot provides practical insights into AI’s potential and limitations in arbitral decision-making. The experiment highlights key learnings about technology constraints, due process concerns, and the enforceability of AI-assisted decisions.The article concludes with reflections on integrating AI into legal frameworks, emphasizing the need for updated regulations and best practices to ensure transparency, fairness, and accountability in AI applications within the legal domain.

The Impact of COVID-19 on Corporate Governance Practices and Legal Requirements

The COVID-19 pandemic has had an unprecedented effect on businesses worldwide, exposing vulnerabilities in corporate governance and challenging existing legal frameworks. This research paper examines the impact of the pandemic on corporate governance practices, focusing on the adaptations made by businesses to maintain operational integrity, ensure compliance, and protect stakeholder interests. It also explores the legal requirements and reforms that have been implemented to accommodate new challenges, including virtual board meetings, increased disclosure obligations, and enhanced attention to environmental, social, and governance (ESG) factors. The paper concludes with an analysis of the long-term implications of these changes, arguing that COVID-19 has accelerated trends toward greater transparency, flexibility, and stakeholder engagement in corporate governance.

DISCLOSURE OF SUSTAINABILITY REPORTS

The bank does not focus on profits but pays attention to the environment and social issues that lead to sustainable development. The Financial Services Authority (OJK) issued regulations regarding Technical Guidelines for Preparing Sustainability Reports. This research aims to determine the level of disclosure of sustainability reports in 2022 at state-owned banks and state-owned companies on the Indonesian Stock Exchange. The research method uses descriptive analysis, which describes the research object based on facts and then analyzes and interprets it. The research results on the level of disclosure of sustainability reports are very good, and show management's commitment to fulfilling disclosure obligations regarding environmental sustainability in economic, environmental, and social aspects. Companies need to improve and optimize programs such as environmentally friendly products, involvement of local parties with sustainable financial business processes, conservation, and biodiversity conversion efforts.

Solving Investors’ Problems with Access to Evidence in Damages Litigation: Suggestions for a Future Issuer Liability Regime

AbstractPrivate enforcement’s role in the European secondary securities market is narrow. Issuer companies’ civil liability for violations of the inside information disclosure obligation is no exception. While trying to avoid the shadow of the US class action institution, European scholarship has long explored ways to increase the role of private enforcement in the securities market. Harmonising issuer liability is one of the suggestions to create a more prominent role for private enforcement. Even though harmonising issuer liability would be a welcome option for legal certainty and investor protection, it seems unlikely to happen in the near future. As an initial step towards potential harmonisation, this article analyses credit rating agencies’ (CRAs) liability and liability for competition law violations from the viewpoint of information asymmetry in litigation. It evaluates whether the legislative solutions in the CRA III Regulation and the Competition Damages Directive regarding plaintiffs’ access to evidence could be used as models for a potential issuer liability regime. The article finds that the choices made in the Competition Damages Directive could serve as viable models for issuer liability. The provisions in that Directive solve the information asymmetry between the plaintiff and the defendant by granting the plaintiff access to evidence in litigation through a court order.

On the Civil Legal Issues of ‘Haunted House’ Sales Contract - Take Peng Qian et al. and Chen Yuanhui et al. House Sales Contract Dispute Case as an Example

As a vital transaction in daily life, house sale is not only related to the property rights and interests of buyers and sellers, but also carries the peace and happiness of the family. However, when the target house of the transaction is labeled as a ‘haunted house’ -that is, there have been incidents such as suicide and homicide in the house, it often causes the buyers and sellers to fall into deep disputes and troubles. ‘Haunted house’ is not a legal concept, but it carries deep folk traditional concepts and psychological shadows, which has a significant impact on the purchaser’s willingness to live and the market value of the house. The research on the civil legal disputes of the sale contract of ‘haunted house’ is inevitable and necessary in practice. Taking Peng Qian et al. and Chen Yuanhui’s housing sales contract dispute as an example, this paper discusses the civil legal issues in the ‘haunted house’ sales contract, and clarifies the definition of ‘haunted house’ and its legal attributes as a defect of the object in combination with the research status at home and abroad, relevant legal provisions and scholars' views. At the same time, it is of practical significance to analyze the relief ways that victims can take in combination with the information disclosure obligations of sellers and intermediaries. FundingThis research was funded by Guangdong Province Science and Technology Innovation Strategy Special Fund ( College Students ' Science and Technology Innovation and Innovation Cultivation ), grant number Pdjh2024a073 and South China Agricultural University 2024 College Students ' Innovative Training Program Project, grant number S202410564128.

Insider Trading Analysis of the Indonesian Capital Market

Insider trading is one of the crucial issues in the capital market that can have a significant impact on market integrity and stability. In Indonesia, the practice of insider trading not only causes losses for investors who do not have access to insider information but can also reduce investor confidence in the capital market as a whole. Research This article will analyze and explain Insider Trading in the Indonesian Capital Market. This study uses notative juridical methods or normative law. The results of this study explain that Insider Trading in the Indonesian Capital Market is contained in Articles 95, 96, 97, 98, 99, and Article 104 which explain that insiders from an issuer of public companies that have inside information are prohibited from buying or selling affects, or companies that make transactions with issuers where they work. The prohibition on the use of insider information is more due to unfair actions against others who are completely unaware of the existence of the information. Investor protection is one very important way because if investors do not get enough protection, they are reluctant to make transactions on the exchange. Without a large number of investors, capital market activities will be weak, and the function of the capital market will not develop, the principle of openness as one of the efforts to protect investors. Such protection efforts will be realized if the implementation of information transparency or full disclosure obligations containing material facts in activities that take place in the capital market in accordance with the purpose of the principle of openness itself, namely to create a fair, efficient and orderly market that protects Investors and helps determine accurate market prices which are all intended for the benefit of Investors or potential Investors.

Examining legal and ethical challenges in HIV/AIDS disclosure obligations and medical practices: a case study from China

In accordance with China’s regulations on the prevention and control of HIV/AIDS, individuals diagnosed with HIV are required to disclose their medical condition when soliciting medical care in Mainland China....

Analysis of the Insurance Applicant's Obligation of Truthful Disclosure

Since China implemented the reform and opening-up policy in 1978, the insurance industry has gradually embarked on a path of sustained growth and development. In 2001, China joined the World Trade Organization, ushering in an unprecedented era of expansion and diversification in the insurance industry. Against the backdrop of increasing public risk awareness, insurance has become an important tool for individuals seeking to mitigate potential losses in their risk efforts. However, this trend has also raised concerns about the ethical and legal responsibilities of insurance companies. A common dissatisfaction expressed by policyholders is that there is a difference between the optimistic description of insurance products during the sales process and the refusal of claims for false reasons after risks occur. This phenomenon has raised doubts about the true disclosure obligations of insurance companies under the Insurance Law and the necessity of improving transparency and accountability in insurance transactions. This study aims to delve deeper into this complex issue by examining the legal framework of policyholders' true disclosure obligations under the context of insurance contracts. By doing so, it seeks to contribute to the ongoing legal reform discussions within the insurance industry, with the ultimate goal of promoting a more fair, transparent, and harmonious insurance ecosystem that benefits all stakeholders.

EXPLORING THE DYNAMICS BETWEEN MUTUAL FUND AND INVESTORS BEHAVIOUR

The basic purpose is to know about the Mutual Fund Industry and to know the behavior of the Indian Investors regarding different investment tools. This project will provide me t he better platform to understand the History, Growth and various other aspects of Mutual Fund. It will also help me to understand the behavior of Indian investor regarding different inve stment tools. SEBI is the apex regulatory of capital markets. SEBI has enacted the SEBI (mutual fund) Regulations, 1996, which provides the scope of the regulation of the mutual fund in India. All Mutual funds are required to be mandatory registered with SEBI. The structure and formation of mutual funds, appointment of key functionaries, operation of the mutual funds, accounting and disclosure norms, rights and obligations of functionaries and investors, investment restrictions ,compliance and penalties are all defined under the SEBI regulations. Mutual funds have to send half yearly compliance reports to SEBI, and provide all information about their operations

The Legal Implications of Information Disclosure Obligations for E-Commerce Platforms: An Analysis Based on the Electronic Commerce Law of the People’s Republic of China

The Electronic Commerce Law (ECL) of the People’s Republic of China is a pivotal regulation that imposes stringent information disclosure obligations on e-commerce platforms. This paper explores the legal implications of these obligations, focusing on their role in enhancing transparency, preventing fraud, and protecting consumer rights. It delves into the challenges faced by e-commerce platforms in complying with the ECL, particularly in terms of data privacy and dispute resolution. Through a comprehensive analysis, this paper provides recommendations for platforms to effectively navigate these challenges, ensuring compliance while fostering consumer trust and safeguarding user data. The findings highlight the importance of robust compliance measures and proactive strategies in building a trustworthy and secure e-commerce environment, ultimately contributing to the sustainable growth of the e-commerce sector in China.

Main contents and implications of the 2023 revision of the OECD Guidelines for Multinational Enterprises*

Purpose This study aims to provide the main contents of the revision of the 2023 OECD Guidelines for Multinational Enterprises and suggest implications for the Korean government and multinational enterprises.Design/methodology/approach Following the brief history of the revision of OECD Guidelines for Multinational Enterprises, this study reviews and evaluates major substantive and procedural revisions of the 2023 OECD Guidelines, and then suggests countermeasures for Korean government and businesses.Findings The most significant substantive change of the 2023 revision is that expectations for environmental due diligence and disclosure obligations, including climate change and biodiversity, for multinational enterprises have been expanded and strengthened. Regarding procedural changes, the biggest change is the introduction of a basis rule for the National Contact Points for Responsible Business Conduct (NCPs for RBC) to judge each issue and a rule that the final statement must include follow-up details and deadlines, which is expected to strengthen the effectiveness of the NCP dispute resolution mechanism.Originality/value This study is the first academic paper to introduce major substantive and procedural revisions to the 2023 OECD Guidelines for Multinational Enterprises in Korea. This study also provides implications for the Korean government and companies following the 2023 revised OECD Guidelines for Multinational Enterprises as follows. First, the Korean government must establish a public–private partnership to closely communicate to prevent Korean companies from being harmed by failing to meet strengthening international Environment, Social and Governance (ESG) standards. In addition, Korean government should actively participate in ESG-related international forums, including the OECD, and strive to reflect the needs and interests of Korean companies. Second, the Korean NCP should strengthen its activities to prevent potential damage by expanding education and promotions for Korean businesses on related overseas legislative trends and NCP dispute case studies so that Korean companies can effectively deal with the strengthened ESG standards. Third, Korean multinational enterprises should preemptively establish an advanced ESG management system to seize new opportunities in the global supply chain previously concentrated in China and India in the process of reorganizing global supply chains according to the trend of strengthening ESG standards and the US value alliance strategy.

Obligation of Loot Box Probability Disclosure and Responsibility for False or Misleading Probability Disclosure: A Preliminary Study of the So-called “Loot Box Law”

Obligation of Loot Box Probability Disclosure and Responsibility for False or Misleading Probability Disclosure: A Preliminary Study of the So-called “Loot Box Law”

Disclosure Obligation of Greenhouse Gas Emission in the Capital Market: From a Comparative Perspective

Disclosure Obligation of Greenhouse Gas Emission in the Capital Market: From a Comparative Perspective

Disclosure Compliance with Different ESG Reporting Guidelines: The Sustainability Ranking of Selected European and Hungarian Banks in the Socio-Economic Crisis Period

As the relevant European Union directives require in-depth sustainability reporting from large institutions, banks are among the concerned with disclosure obligations. Several institutions prepare self-structured recommendations by which companies are indirectly fostered to make their operation more sustainable through reporting and to help compliance with the upcoming Corporate Sustainability Reporting Directive (CSRD) regulations. However, in the preparation period, differences can be found in the actual sustainability disclosure practices across Europe (primarily by a western–eastern European relation). To examine this issue, this study aimed to investigate if there was any variation in the reporting compliance with aspects (key performance indicators—KPIs) of three reporting guidelines (Global Reporting Initiative—G4, Financial Services Sector Disclosures—GRI; Alliance for Corporate Transparency—ACT; ISO 26000:2010—ISO) between top European and Hungarian banks according to their 2021 sustainability/ESG reports, using content analysis-based disclosure scoring. The results revealed no significant differences among the general (aspect-pooled) scores for different guidelines, while the differences were significant for each guideline between the two bank groups. In the aspect-level evaluation, the European banks had higher scores in most cases, with the Hungarian banks receiving higher scores in 4 of 49 GRI, 1 of 16 ACT, and 2 of 37 ISO aspects. Significant correlations were indicated in disclosure score values between the two bank groups, which suggested similar preferences for the aspects demonstrated; however, elaboration levels differed. These findings showed that the European and Hungarian banks could be differentiated by their sustainability disclosure patterns. The results suggest a better CSRD-level preparedness of the top European banks than of the Hungarian ones, with the latter being introduced as a model group of the region. This reflects the need for more efficient adoption of best practices by financial institutions in the eastern parts of Europe.

Obligation of Loot Box Probability Disclosure and Responsibility for False or Misleading Probability Disclosure: A Preliminary Study of the So-called“Loot Box Law”

Obligation of Loot Box Probability Disclosure and Responsibility for False or Misleading Probability Disclosure: A Preliminary Study of the So-called“Loot Box Law”

Balancing public health and privacy rights: a mixed-methods study on disclosure obligations of people living with HIV to their partners in China

BackgroundIn 2021, a Chinese court, based on the newly enacted Civil Code, first revoked a marriage license due to the spouse’s failure to disclose their HIV infection before the marriage. This landmark case ignited a fresh debate on whether people living with HIV (PLHIV) have a legal duty to inform their spouses and sexual partners. Advances in medicine have partially isolated HIV transmission from sexual contact, extending the legal basis for the obligation to disclose beyond disease prevention. This study investigates some possibly unforeseen challenges for PLHIV in China to fulfill this duty, and the outcomes of their decisions in light of the government’s goal to promote health.MethodsThis study aims to provide a detailed examination of the legal provisions and practices concerning partner notification among PLHIV in China. A mixed-methods research approach was employed between 2019 and 2020, combining questionnaire surveys, in-depth interviews, and participatory observations. A total of 433 valid responses were obtained through a questionnaire posted on a Chinese online platform for PLHIV. Following the collection and random coding of the questionnaire data, 40 individuals living with HIV were selected for in-depth interviews. Subsequently, a six-month field investigation was conducted in Guan ai jia yuan (Caring Home) in Jinhua City to further explore this issue.ResultsA considerable proportion of PLHIV exhibit a high rate of disclosure to their spouses (nearly 80%). In the context of sexual partners, 56% of PLHIV stated that their sexual partners were aware of their HIV infection. Whether married PLHIV disclosing to their spouses or unmarried/divorced PLHIV disclosing to sexual partners, however, a substantial majority expressed apprehension about the potential disruption to their relationships that the disclosure might cause. The sole exception was observed among married PLHIV in extramarital relationships who demonstrated a slightly diminished level of concern in this context. Reasons for non-disclosure predominantly included undetectable viral load and the adoption of protective measures.DiscussionThis study reveals that a prevailing “HIV stigma” hinders PLHIV from voluntarily fulfilling the disclosure duties bestowed by Article 38 of the Regulations on the Prevention and Control of HIV/AIDS, and the unclear legal provisions of the new Civil Code play a significant role in this regard. Addressing this issue necessitates not only increasing societal tolerance toward PLHIV and reducing instances of social exclusion but also shifting the legal basis of disclosure duties from disease prevention to rights and obligations within the legal relationships of the parties involved. When it comes to the recipients of disclosure, for instance, it is crucial to differentiate between spouses and sexual partners. As for PLHIV failing to fulfill their disclosure duties, apart from interventions involving indirect notifications, the addition of further legal responsibilities may not be advisable. Intentional transmission actions, on the other hand, should still be subject to severe penalties.Clinical trial number: Not applicable.

The Professional Conflict Pertaining to Confidentiality—The Obligation of Disclosure for Intermediaries of Financial Transactions

The present study aims at providing an overview of the international, European, and national legal frameworks relating to the obligation of intermediaries of financial transactions to report to tax authorities, and the professional secrecy which applies to their professions, as well as the conflict between the two. The authors address these topics from theoretical and jurisprudential perspectives, both at national and European levels, using doctrinaire, documentary, and comparative approaches. The analyses pointed out that the focus is placed on lawyer–intermediaries’ activities and liabilities when their activity is covered by confidentiality and legal privilege. Specific attention was revealed to be necessary when the conditions under which an exemption from the reporting obligation applies, and the particularities of the effects of the regulation in these scenarios. The topic of observing the legal framework and solving the possible conflicts generated by the divergent regulation of the law enforced has been the subject matter of recent European case laws that impact all the legal systems of the European Union’s member states, which has necessitated an examination of the hierarchy of law systems within the European Union member states and to emphasize the practical jurisprudential effects.

Is mandatory disclosure an effective panacea for buyer beware?

Purpose The purpose of this paper is to examine whether mandatory disclosure of information accompanying the sale of real estate achieves its aim of informed purchasers. Design/methodology/approach Using a case study approach focused on mandatory disclosure in South Australia data was collected from interviews and focus groups with key personnel in the property industry involved in the production of information required to fulfil vendors’ disclosure obligations. Findings The authors found that purchasers are ill-served by a long and complex form of mandatory disclosure with a short time frame that prevents the use of the information provided. Without good form design and increased digital affordances provided by the cadastral and conveyancing systems, mandatory disclosure is insufficient to ensure minimisation of information asymmetry between vendor and purchaser. Originality/value To the best of the authors’ knowledge, this is the first Australian qualitative study that examines the utility of mandatory vendor disclosure in real estate sales and the first to consider the impact of the digitalisation of cadastral and conveyancing systems upon the efficacy of mandatory disclosure regimes.

Environment Risks and Their Responses to Chinese Companies Investing in Countries along the Belt and Road: Solutions Based on the International Investment Law

In recent years, Chinas investment in countries along the Belt and Road has gradually expanded. Minerals, energy, manufacturing, infrastructure, engineering construction, etc. are key industries for Chinese companies to invest in countries along the road. Legal deficiencies in the host countrys environment, behavioral defects of overseas investment companies, and the lack of regulatory norms and weak supervision of environment risks in China increase the potential environmental liability risk of Chinese companies. On the purpose of reducing the occurrence of environment risks, this paper takes the international investment law as the entry point, adopts the literature review method and data induction method, and combines a large number of environment risk treatment cases of Chinese companies in the project investment, and proposes five solutions: include environmental protection clauses when signing international treaties with host countries; Strengthen companies environmental responsibilities and environmental disclosure obligations; Special legislation for overseas investment by companies; Fully use the role of overseas investment insurance and establishing a diversified mechanism for resolving international environmental disputes.

Report on the 8th Annual EFILA Lecture on ESG Investment Strategy

On 13 October 2022, the European Federation for Investment Law and Arbitration (efila) hosted its 8th Annual Lecture in Brussels on “esg Investment Strategy”. For the first time two speakers rather than one discussed esg issues from different perspectives. Jillian Kirn provided the legal framework regarding esg, while Laurent Lhopitallier explained the practical implications of implementing esg from Sanofi’s experience. The ensuing debate illustrated that esg is moving fast and that the increasing disclosure obligations for companies will have a significant impact on companies’ esg ambitions. The challenges that the growth of esg will pose was also discussed, in particular as regards the collecting verifiable esg data and the ranking of companies based on this data. Generally, it was concluded that both companies and States must be more ambitious in the esg standards they aim to achieve.