Improvement Of Shareholder Derivative Action In China

We have introduced the system of shareholder derivative in 2005, when the Company Law was amended in China. As provided in the article 152 of the Company Law, where a company was infringed upon by any director, supervisor or senior manager, the shareholder, on behalf of a company, has the right to file directly a derivative action with the People'Court in the name of himself/herself under the special circumstance. But there is no corresponding system to maintain and realize this right.With the study method of compare, this article goes through the analyses and unscrambling of the key content with respect to the derivative action, and provides available information and proposal on amendment to the relevant law or system.This article consists of three chapters:Chapter 1: Introduction of shareholder derivative action. This chapter introduces the derivative action including that the definition, origin, nature and conducts a compare between the derivative action and relevant concept. It also introduces the nomological basis of derivative action.Chapter 2: Function of derivative action and analysis of the present system of .derivative action in China.Chapter 3: .Improvement of derivative action. This chapter introduces the plaintiff, the legal status of the company and other parties in derivative action, and analyzes the Mechanism of Obligation and Mechanism of Prompting.