The Judicial Remedy Of Shareholders' Substantive Rights

Company law of the People's Republic of China was published in December. 19, 1993, it stipulates many substantive rights enjoyed by the shareholders. Appropriate remedy measures should be taken to put the shareholder's substantive rights into effect, so the shareholders can protect their legitimate rights by making use personal remedy or the state remedy measures when Senior partners and the board of directors infringe upon their substantive rights. The judicial remedy mentioned in this thesis is the remedy measures by which the shareholders protect their legitimate rights and interests. Among all the relief measures, the judicial remedy is the final and the most effective remedy measures. There are two kinds of shareholder's lawsuit, one is direct action, the other is derivative action. The 111th article of company law of China enacts the direct action, but the applied scope and the maneuverability stipulated in the article are not satisfactory. As to derivative action, there are no rules in our company law, which shows that the rules about judicial remedy of shareholder's substantive rights in our country are not very perfect. Not only Continental law system but also Anglo-American law system abroad both take the share holder's litigation as important means to protect the shareholder's rights. This thesis intends to analyses the contents and the nature of shareholder's right, direct action and derivative action of some countries and regions such as England, the United States, France, Korea, Japan, and Taiwan region, then analyses the current situation of the legislation and the enforcement of the law onshareholder's lawsuit, and then intends to make suggestion on how to perfect the direct action and how to establish the derivative action in our country. Moreover, the thesis discusses how to protect the substantive rights of state shareholders by making use of the State-owned Assets Supervision and Administration of Commission in view of the special situation of state shareholder's right of China.