Study On The Rules Of Shareholder's Derivative Suits

Shareholder is the foundation of the existence of company and the most important interested person in the company. To protect rights and interests of shareholders is a basic task in corporation law. Shareholder derivative suit is an important content in corporation law and its basic function is to resolve conflicts in the company and remedy rights of shareholders. However, shareholder derivative suit is far more significant. Because shareholder derivative suit occurs among such parties concerned inside the company as shareholders, managers, directors and the corporation and the process of proposition and operation of derivative suit is the process that internal corporate governance is interfered with administration of justice, as an external mechanism with national judicial power participated in, it is significant in safeguarding efficient operation of structure governance by internal legal entity, coordinating corporate operation, judicial supervision and so on. This paper attempts to begin with the principles and foreign laws of shareholder derivative suit system in order to analyze deficiencies in ongoing derivative suit system in our country and come up with the conclusion concerning how to construct derivative suit system in our country.Chapterâ… is the analysis of principles of shareholder derivative suit. This chapter first introduces concept and origin of derivative suit. Shareholder derivative suit refers to that raised by shareholders with legal qualifications in corporate name in order to protect corporate interests when illegal acts of controlling shareholders, directors and other employees of high ranks infringes corporate interests but the company is neglectful of looking...