An Analysis On Our Shareholders Representative Litigation System’s Perfect

The shareholder representative litigation is an important system to safeguard the interests of minority shareholders. The Company Law of China has amended in2005. It is the first time to define the shareholder representative litigation. The system now in its infancy and many details need to be further clarification. A number of important issues on the construction of the specific system do not solved. Mainly as follows: plaintiff qualification’s concept of shareholder representative litigation is ambiguity; the scope of the defendant is not concreteness; the company and the other shareholders’ status in the proceedings is not clear; pre-litigation procedure, litigation costs and guarantee problems have not to be defined accurately yet. It is very unfavorable to the implementation of shareholder representative litigation. In comparison, in United States, Japan and other developed countries, the shareholder representative litigation developments are very maturely.The development of China’s company law should reference the experience of other countries, in order to improve the system of shareholder representative litigation of China.This paper includes five parts as following. Firstly, the introduction gives an overview of shareholder representative litigation. Secondly, the thesis explains the special function of shareholder representative litigation. Thirdly, in order to make the rights and obligations of party clearly, I pay a great attention to plaintiff qualification, the scope of the defendant and the status of company and the other shareholders. With comparisons of Taiwan and abroad law on shareholder representative litigation, I suggest that the pre-litigation procedure, litigation costs and guarantee problems should be improved and perfected. The author wish that her own proposals about how to further perfect the shareholder representative litigation of the current Company Law is useful.