A Legal Study On The Rule Of Demand In Shareholder Derivative Litigation

Shareholder derivative litigation, which was created by BritishChancery Court, has exceeded the scope of common law sysytem,and wasintroduced by many countries in the world.It was until2005,our countyadopted this procedure in the Corporate Law. Despite shareholderderivative action has played a important role in minority shareholdersprotection and company’s internal management improvement, itsdeficiencies can not be ignored.First,as shareholder derivative actionwas a deny for legal personality of the company, it may result in a largenumber of strike actions, which will be a interference on company dailymanagement.In order to achieve a balance between the protection ofminority shareholders and the operating efficiency of Corporates, it isnecessary to impose restrictions when shareholders file a shareholderderivative action.The demand procedure is the main and most desirable wayof restrictions.The main purpose of this thesis is to seek the best modeof the demand procedure by comparative Study on different nationalregulations to provide a reference for the reform of demand procedure in our corporate law.This article consists of five chapters.the first chapter introducesthe basic theory and value of the demang rule.The second chapter focuseson the the main body of the demand program, including the applicant andthe respondent,and different legislative restrictions on thebody.Chapters III and IV mainly introduce the implementation of the demandprocedure and the legal effect when the respondants refuses to broughta sue to cunrts.The last part introduces the existing provisions and thelegislation defects of the demand rule in our corporate law. In order toreform the demand rule in our company law,The authors has proposed anumber of recommendations.