The shareholder representative action system is designed to empower certain capable shareholders, on behalf of themselves, to bring up an action against those who have illegally caused damages to the corporation, which itself was reluctant to protect it's benefits via litigation. This paper, commences with the attempt to define the nature of shareholder representative action by using foreign legislation and corresponding theories as reference, and anatomizes the structure of parties in action, expounds the theoretical conditions under which the scope in which a shareholder can litigate, the scope of plaintiff, the role of the corporation concerned in an action, the relationship between the litigant shareholder and the rest shareholders, and also make a study on the trial, the judgment and the ascription of the interests arising from such an action. The author hopes this paper would provide jurisprudential support for judgment in cases of shareholders representative action, and bridge the gap in law stipulation, so that the interests of small shareholders will be protected effectively.
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