On Behalf Of Our Shareholders' Pre-litigation Procedure

Lots of progress have been found in “the company law”, which was amended in2005.The advanced progress has performed in two sides: one hand is to strengthen thesupervision power of the management team in the company by strengthening theinterests of minority shareholders; on the other hand is to encourage the company toadministrate themselves and boarded the limited range all the measures has beentaken. That shows the inevitable claim of “the company law” to be well geared tointernational standards, also shows the legislate should pay more attention andcombine with the special national condition. The litigation system for representativeof shareholders is a distinctive interpretation of this principle. The system has beenbecome the secure guarantee to protect the interests of minority shareholders, causethe system drive the manger of company. Consider the interests of the shareholderswhen they made decisions so, minority shareholders can be more involved incorporate governance with the attitude of ownership. A coin has two sides, it willincrease the burden of the company as the system restrain the will of the company.The establishment of pre-produce can make up the shortage of the system and itis the best point between fairness and efficiency because it takes measures to makeevery efforts to avoid the passive aspect, but "make every efforts" doesn’t means thepre-produce can be used sufficiently under the current market economy condition thatthe democracy and the legal system is not perfect.The first part mainly introduces the necessary of the litigation system forrepresentative of shareholders from three sides: the definition and the feature ofthe system，the difference between direct action and the necessary of establishment byanalyzing the three sides, introduce the relationship between the litigation system forrepresentative of shareholders and the pre-produce.The second part introduce the structure of the pre-produce of the litigationsystem for representative of shareholders, including the applicant, application,application effect. Then illustrate the meaning of the produce, and the meaning showsits necessity.The third part analyses the current situation of the litigation system forrepresentative of shareholders from five aspects, and points out the existing problemsof procedural system and puts forward some suggestions for further improvement.