Shareholders Lawsuit A Number Of Issues For Study

Shareholders' suits involve direct suit and derivative suit. Current shareholders' suits system is so simple that it cannot be applied in practice. Now it is a burning issue of the day. One side, conflicts of interest in corporations are serous and worsen increasingly. On the other hand, victim in the conflicts could not to lodge a complaint. Whereas the company is the best business structure and perform an important function in the development of Chinese economy, the article focuses on the principle, mechanism, effect about the system and basic thought in our future law.By comparative method and absorbing foreign theory, the article analyses the de facto bound and challenge that the shareholders' suits system faced, those came of the history, the background of system and shareholders' demand. Shareholders' suits system can protect shareholder and corporation, improve on corporate governance structure, enrich company law, advance the citizen society and safeguard national property. We should take action as follows: lawmaking link with judge-made law and insist on principia such as procedural justice, make a difference between close company and public company, equal protection and national treatment. The act ought to enumerate the cause of action one by one and list file names with a clause to reveal all the details. At the same time we will amend it with the academic evolution. In direct suit, current civil procedure can be applied to joint action and individual action. Colony action system should use for reference of class action from America. In derivative suit, the article studied these issues: the parties, plaintiff's faith, right and obligation,demand requirement and the qualificatory request to plaintiff. Security-for-expenses went gown very well with scholars, but the author doesn't think so in view of actual facts in China. Most of existing study concentrated on certain aspects of shareholders' suits system, but this article forms whole system info.