The Dilemma And Improvement Of Shareholder Representative Litigation System

Shareholder Representative Litigation System derives from British court cases. Nowadays, as company has become the main part of economy, the system has turned more powerful in protecting the interests of small and medium-sized shareholders and companies. With decades of development, it has become mature in developed countries and has gathered extensive experience in design and practice. To adapt to the rapid development of market economy, we introduced the system to Corporation Law when it was amended on October27,2005. From then on, it has guaranteed the legitimate rights of medium and small sized shareholders in our country. Though research and exploration of the system have gone through a long period, it is still a weak point of our Corporation Law for the posterior introduction, lacking of typical cases and inadequate experience.The thesis bases on the introduction of Real Estate Infringement Case in Wuxi to draw forth its topic. Then it centers on the shareholder representative litigation’s pre-procedures, the company’s status and distribution of evidential burden concerned in the case, relies on the analysis and comparisons among the specific regulations and general theories in developed countries to put forward its opinion. At last, it raises the author’s suggestions on the Shareholder Representative Litigation System in China, like the determining of the application object when others infringe shareholders’ company, making the pre-procedures more specific, legal effect of the court’s decision, income distribution, and the assumption of obligation when a shareholder loses a lawsuit as well as the location of burden of proof, expecting to provide beneficial reference for the further study of the system in future.