Thoughts On The Shareholder Rights Litigation Of Corporation

When the corporation's high-level manager such as directors and managers, controlled shareholders and parent company, or some others invade corporation's interest, but corporation's directorate and supervisors negatively nonfeasance, the shareholders who possess given shares in the corporation bring an accusation against the invader. such litigation is indirect litigation, or derive litigation. The indirect litigation means who have not direct interest with the case results can become plaintiff, which breach the traditional party theory. There is a prepositive check procedding in the case of indirect litigation, the plaintiff shareholders must respect corporation's artificial personality as possible. The legal cost that plaintiff have paid out can obtain from corporation's case interest. In the case of direct litigation, the litigation reconciliation proceeding is special. In addition, other shareholders have the rights to acquaint themselves with the total litigation. In the case of direct litigation, the compensation burden include defendant's compensation burden and plaintiff's compensation burden when they lose the lawsuit.