On Shareholder's Double Derivative Action

Double derivative action get popular in recent years as a new model of shareholder derivative action,which is used to solve the governing problem of sophisticated modern company institution.Its basic content is the holding company take place of the subsidiary company to take the derivative action.Although double derivative action has a new form,if we inspect the essence deeply,we may find double derivative action has the same foundation as traditional derivative action.Its basic litigation structure is built according to the traditional derivative action.This paper has four parts to constitute the main points.First part is about the basic connotation and meaning of double derivative action.At beginning,the basic connotation is introducied,then we analyse the practical meaning of double derivative action to our country,espectially talk about the positive impact to Chinese civil litigation.Second part investigate double derivative action abroad.After analysing practical case and court point,it is pointed out that the key problem about double derivative action.Then the foreign rules are introduced.It is concluded that the nature of double derivative action is traditional derivative action.The third part are the key points.This part take the basic litigation of double derivative action as the theme.First of all, this paper analyse the litigant nature,design a pretty efficient and reasonable litigant model.Then we discuss the legitimate foundation of plaintiff'authority to dispose of the rights.Accordingly plaintiff's authority to dispose of the rights is comfirmed in a reasonable range.after that,the range of res judicata is stated,comfirming accurate objective scope of res judicata can simplify the litigation and expanding subjective scope of res judicata is able to solve the disputes one time.Last content is about the cost of double derivative action,the suit is seldom put into practice on account of high cost,this paper put forword two ideas,reforming court charging mechanism of and innovating financing machenism,to relieve litigant shareholders' high pressure of litigant cost.Last part is about the conditions of double derivative action in China and relevant suggestions.It is often seen subsidary companies are damaged in practice.However,it is difficult for holding companies' shareholders to get legal remedy because of the lack of legalbasis of double derivative action.It is typical that a slump in the share price of Hanergy Thin Film Power Group,it reveal the importance of double derivative action,then this paper point out that the reason why double derivative action do not get development is imperfection of basic theories of civil litigation in China.According to the above analysis,five suggestions are given to perfect the theories.