Minority Shareholders The Right To Appeal And Judicial Intervention In The Scale Balance

In nowadays corporate governance, the majority shareholders and the directors control theaffairs of a company from different aspects. The powers of the majority shareholders come fromprinciple of "majority rule" in general meetings;the authorities of the directors are generallygranted by the Memorandum and Articles of the corporation. Their powers and authorities are bothlegal. But the legal powers and authorities may be abused by the majority shareholders and directorsto benefit themselves in the sacrifices of minorities. This paper focuses on the litigations theminority shareholders may be taken against the controllers to protect their interests and the interestof the corporation. Cardozo , the most notable justice of US said "Foul litigations bring the utmosttruths of life. " The writer here compares the relevant regulations from the new CorporationLawXSecurities Law> of China and the relevant acts of UK and USA to discuss how to balance thefreedom of corporate governance and the judicial review of the disputes between the minorityshareholders and the controllers of the company, how to achieve the justice and efficiency at the sametime.