On The Litigated Extension Of The Derivative Suit

The derivative suit plays an important part in maintaining the shareholders'management role in the corporation and perfecting the management structure of the corporation. But the operation mechanism of this system breakthrough the autonomy of the corporation. If arranged properly this system can be a sharp sword of the well-meaning shareholders to maintain the corporation and their benefits. But if arranged improperly it may be the tool of the vicious shareholders to interfere the management of the corporation and pursue their personal benefits. The derivative suit can realizes the system value, the key is how to confirm the extent that the judicial power interferes the management of the corporation. It is namely how to confirm the litigated extension of the derivative suit. This purpose of this article is to perfect the regulation of the litigated extension of the derivative suit. In order to realize the value of the derivative suits and construct the harmonious developing environment of the corporation.This article discusses on the litigated extension of the derivative suit. The foreword analyze the system value of confirming the derivative suit's litigated extension and the influences to the entire derivative suit system. The conclusion is the summary of the whole article. The main body of this article is divided to five parts. It not only dissertates the principle that we should abide to when confirming the litigated extension of derivative suit, but also compare the different modes of the defendants of the derivative suit and dissertate the litigated conducts of the derivative suit, and analyze influences of the liability exempted mechanism to the derivative suit's litigated extension,...