On The System Of Shareholder Representative Action

Shareholders Representative Action implies that where the company neglects to bring a lawsuit to claim damages after the legal interests of the company are violated, the shareholders of the company will bring such a lawsuit in their own names with the judged damages turned in to the company. With the constant economic development in our country, the problems in the management of companies are becoming increasingly obvious. Since some senior management personnel such as the director, the supervisor, or the manager violate the interests of the company, even the interests of some minor shareholders, the interests of the company and the minor shareholders are in urgent need of the protection of law. Although the newly revised Corporation Law, for the first time, embraces the provision on the Shareholders Representative Action, providing a legal basis to the minority shareholders to protect their legal rights and interests through Shareholders Representative Action, the legal provisions are not perfect at all with many problems to be solved.However, the Shareholders Representative Action system of China’s new company law is only one provisions,3articles. There is still slightly rough, thus the judicial application will be improper. This paper tries to put forward the legislative proposals on the basis of dialectical analysis of the new corporation law from historical breakthrough and omissions.This Paper is divided into three chapters. They are as follows:Part1:This chapter focuses on some fundamental issues involved in the system of Shareholders Representative Action, including some concepts and their features, functions, origins and development; and the theoretical Basis for the System of Shareholders Representative Action.Part2:This chapter consists of two parts:One, the Status Quo of Shareholders Representative Action in our country; Two, analysing the relevant provions of the Stockholder’s Derivative Action, summing up the loopholes and shortcomings of the Shareholders Representative Action law with a view to Shareholders Representative Action program design more targeted.Part3:This chapter is the suggestions of the Chinese Shareholders Representative Action System by analysis the procedure problems of the system of Shareholders Representative Action. Research and reflect on the procedural regulation, including the plaintiff, defendant, and the status of the company in Shareholders Representative Action; system of the demand rule; jurisdiction of action; litigation reconciliation and withdrawal; burden of proof; system of security for expenses in derivation action and so on.