Analysis Shareholders' Derivative Suit System From Damaging Benefits Of Company

Shareholders' derivative suit system is the basis of shareholder rights protective system. China's system of shareholder derivative suit is regulated in the Corporation Law which has only a few principal provisions. There is no specific legal provisions can be referenced in China's judicial practice which is chaos. The system is in favor of legal society and market economy.This thesis is divided into three chapters.Chapter one which is devoted to the specific circumstances of the case points out the focus of a controversial case. The court how to adjudge? The author analyzes the case of jurisprudence.Chapter two analyzes the shareholders' derivative suit system which has specific provisions and the existing problems with the case. These issues have implications for the specific operation of t the shareholders' derivative suit with institutional barriers. These problems including: irrational litigants arrangements, pre-suit demand emergency provisions rudeness, jurisdictional court missing, lacking of reconciliation and withdraw, litigation fee defaulted.Chapter three improves the shareholders' derivative suit system in accordance with the legal construction of Chinese society. China's democracy and legal system building learn from multi-national legal principles and legal system. These suggestions including: Reasonable arrangements for litigants, detailed pre-suit demand provisions for emergencies, determined by a court of competent jurisdiction, limiting the rights of reconciliation and withdraw strictly, constructing litigation fee system.Improving the shareholders' derivative suit system has practical significance. Perfect the shareholders' derivative suit system will protect the interests of minority shareholders, spur majority shareholder rational decision-making, improve operational safety and enhance the company's vitality and competitiveness, reform of state-owned enterprises' practical problems, stable the market society, adapt to the requirements of WTO, realize China's companies in an invincible position in the international community.