The Statutory Derivative Action in China: Critical Analysis and Recommendations for Reform
24 Pages Posted: 24 Jul 2008
Date Written: July 23, 2008
The article conducts a critical analysis of the newly introduced statutory derivative action in China and then makes relevant recommendations for reform. The introduction of derivative actions is a major development in Chinese company legislation. In general, the provisions have established a basic legal framework for the bringing of derivative actions, and it is expected that the regime will have important implications in practice. However, there are some serious problems that need to be properly dealt with in order for the derivative action to function more effectively. The article looks at these problems from a comparative perspective, drawing on overseas experience, and sets out reform proposals, taking into consideration China's particular situation.
Keywords: Derivative action, Shareholder protection, Corporate governance, China
JEL Classification: K22, K33
Suggested Citation: Suggested Citation