Study On The Litigation System Of Shareholder Of The Company In China

Company, the most important body of the commercial organization in modern society, its function and role is unmatched by any other organizations. The reason why Company can hold the palm in social and economic development timelessly, the contribution of the shareholders has been such a great tribute. Due to the shareholders’ investment, there can be material basis for the company’s Existence and Development. So it was said,"no shareholders, no Company". Because of this, all countries put the interests of shareholders in the core position of corporate governance. And the Company Law have the protection of the interests of the company as their bounden mission. Among all the measures to protect the interests of shareholders, shareholders litigation is undoubtedly an important one other than other mechanisms and can not be replaced.The company shareholder litigation system has undergone a development process from single to multiple, rules weak to increasingly improving in my country. There are two types of Company shareholders litigation:direct action of the shareholders and shareholder representatives the lawsuit, even they both are for shareholders’ rights protection, the two are significantly different. The direct action of the shareholders are individual rights of shareholders directly affected by the unlawful infringement lawsuit brought consequences of litigation borne by the plaintiff shareholders own the company in the defendant’s position in the litigation; shareholder lawsuit shareholder requests the company to directors and supervisors high of remedies for damage suffered in the company’s interest in the lawsuit filed, the outcome of the proceedings in his own name when no avail commitment, the company is in the status of a third party in the proceedings.With "company law" modifications in2005as a symbol, company shareholder litigation system has entered a rapid development time. Act not only expanded the scope of the shareholders filed a lawsuit, such as the dissolution of the company resolution null and void v. withdrawal of the complaint by the resolutions of the Company, the shareholders’ right to appeal, the appeal of the Buyback Rights, Justice v. introduced shareholder representatives the litigation make up the vacancies in our system, so that the shareholders of the Company to safeguard the interests of companies and individuals have a clear legal basis. At the same time,"Securities Act" and other regulations also provided the necessary rules base for Company shareholders litigation system.Such changes make every corporate system progressing witness feel delighted, but, unfortunately, with the highly active market economy, the cases about Company shareholders litigation are increasing each day, and also a variety of new types cases. Because of the less than perfect Legal norms, it result in a variety of troubles and problems during judicial practices to be solved. Such as the principle of general jurisdiction makes the lead trial activities more difficult, the shareholders at the trailing edge, unfair allocation of the burden of proof, excessive burden on the cost of litigation, hit the shareholders’enthusiasm to participate in the proceedings, complex mass litigation procedures, blurring the lines leading to the choice of the specific application is difficult and repeated litigation and other waste of judicial resources, generating the opposite outcome of the proceedings. To this end, China should learn from foreign advanced legislative and practical experience while also based on our own national conditions, by the means of uniting jurisdiction, allocating the burden of proof flexibly, collecting reasonable litigation costs, improving the Group’s litigation system, building the consolidation and transformation of direct action shareholder lawsuit with shareholders and other measures to improve our company shareholder litigation system, then we can facilitate the effective protection of the rights of shareholders.