Study Of Small And Medium Shareholders' Equity Litigation Relief

Though China's company law is still not ripecompared to that of many developed countries,the system of direct action of shareholders is perfected in the newly revised version.Also defined is the deriviative actions system.This declares the execution of the system.It is more important that how to make it practical and how to protect the rights and interests of the minority shareholders better.So it is necessary to derive experience from developed countries.This paper will desertate by this means.The first part is related to rights and interests of minority hsareholders. It's hard to define minority shareholders as it has a large population and varies from area to area. By comparison, the author made the definition clear. It refers to the partners whose share makes up less than half of the capital stock or those who hold less than 50%of the total but have no effect on management, nor rights to contral either. Just like other partners, the minority onse have equal riaghts, this text make the introduction to shareholder concept, content and classification of right one by one.Part two mainly concern the theoretical of how to pretect the equal rights of the minority shareholders. The protection may not only realize the equality of the minority shareholders, but in a long run enhance the benefits of both, and in turn may accelerate the majority's demands of their equal rights. To steng them the protection will be of great significance in that the equality of law can be much better combined with the benefits.Economically, unless the rights of the minority are offered necessary and timely releief long, it will certainly harm their enthusiam for investment, thus causing the depression of the market The system of shareholders' action which is the concequence of performing equity and banning rights abuse among the staff, is an effective and important way to improve the protection. The system also plays an active part in balancing the rights and responsibilities of shareholdersand in separating the possesion and the management of the company.Part three study shareholder's direct lawsuit. Shareholder's direct lawsuit can be applicable to the procedure of general civil action directly.The paper focusees on thee...