The Study Of The Compensation Of Litigation Fee In Shareholder's Representative Action

The system of Shareholder's Representative Action has formally introduced in Corporation Law in 2005.The continuous improvement of legislation and the maturity of corporate governance system,to some extent,are moved the system to protect the interests of the company and its shareholders.But owing to the legislation is too principled or even missing and no special provisions of Shareholder representative litigation costs charging ,leading to such tailor-made protection measure for minority shareholders become unless.The essence of shareholder representative litigation cost compensation is to transfer the litigation cost.Only if the company accepts the plaintiff's litigation costs, the lawsuit may be filed.One of the purposes of shareholder representative litigation is to prevent abuse of litigation.In the practice of the shareholder representative litigation, the company has little to compensate for the cost of shareholders or for the sake of restraining shareholders to take advantage of their own interests,however, through the court's judicial permission system to encourage legitimate litigation, eliminating useless litigation, the compensate for the cost of the company to shareholders is just with legitimacy.This paper consists of four parts.In the first part,by introducing the concept and legal basis of the shareholder representative litigation cost compensation, provides theoretical support for the compensation of shareholders especially for the company should bear the cost of losing compensation obligations of the shareholders.The second part is the analysis and comment on the the shareholder representative litigation cost.We can learn much in the compensation system of the shareholder representative litigation fee,especially in the construction of the range of the fee and the court's judicial permission system.The third part of the paper is the problems which exists in our country. The courts always charge on the standard of the property case on the Shareholder's Representative Action.There is no specific regulations on the standard and the range of the cost compensation in law,according to the principle of the front procedure of the Shareholder's Representative Action and lacking the control from the courts,lead to less possibility and lacking legitimacy to shareholders on compensation fee,as a result,leading to no balance between the cost and income of the shareholders.The fourth part is the suggestion on the problems.According to the problems of the Shareholder's Representative Action,the author suggests that construct the system of special case acceptance fee of the shareholder representative litigation,easing the burden of the shareholders.Strengthen the control of the Shareholder's Representative Action.According to the principle of legislation on the compensation for shareholder's representative litigation expense in China,the paper will put forward some suggestions and give reasonable legislation suggestions in order to improve our legislation.