A Study On The Lawsuit System Of Shareholder's Representative

The Shareholder's Representative Litigation, also known as Shareholder Derivative Litigation, is a lawsuit mechanism with the modern corporate system development and improvement.but also is a relief method to make up the lack of necessary means for shortcomings in corporate governance structure.It is an important system of company law.The Shareholder's Representative Litigation is produced by England, and fully develop in American. It has become a mature and proven system, and was gradually accepted by the civil law countries. The system of Shareholder's Representative Litigation has two functions.One is the Prior inhibition, which is that Shareholder Representative Litigation is an important method to defense the illegal actions of the insider and deter the illegal actions, the other is the After relief, which is thatShareholder Representative Litigation benifit to protect the interests of companies, small shareholders and creditors of the company. Therefore, the company engaged in the daily operations of the firm must consider the legality of their actions to avoid the shareholders to investigate the liability of their wrongful acts through the shareholder representative litigation.Now, the shareholder representative litigation is the most important relief and preventive means for the shareholders to oversee the company and prevent from absuing the right of operate.It has been recognized by the Commercial Legislation in most countries.Because the system of shareholder Representative Litigation is in the early stage of development, there are still many deficiencies and defects.Therefore through learning from the foreign mature system and legal practice, it is very necessary to improve our shareholder lawsuit system that it requires the Plaintiff of shareholder lawsuit has fully subjective and justice Representation, increases the real shareholder in the scope of the plaintiff, limits the scope of the defendant and consolidates the company's position in the system, etc.