Shareholder Derivative Action On Operational Procedures

Shareholder derivative litigation system is the creation of common law countries. It is a special relief system that shareholders take lawsuit when the rights of companies and their small and medium-sized shareholders are damaged. In October, 2005 , China amended "the People's Republic of China Law of corporation", in the form of legislation to the complete introduction of innovative shareholder derivative litigation system, but the newly amended Law of corporation on the shareholder derivative litigation system is relatively rough and sweeping, simultaneously lacked of a series of measures, the result is that the system and the present civil procedure law is unable to connected completely. In order to be brought into the judicial process, Shareholder derivative action ,to a large extent, depends on the specific design of the system. The author discussed the current situation of Chinese shareholder derivative lawsuit from the concept of shareholder derivative lawsuit to the theoretical basis, in comparison with the research of shareholder derivative litigation cases of foreign legislation. Finally the author proposed to perfect China's shareholder derivative litigation system.