Whither the Common Law Derivative Action
Common Law World Review, Vol. 38, No. 3, pp. 197-206, 2009
12 Pages Posted: 20 Apr 2011
Date Written: 2009
The common law derivative action was developed as a result of decades of case law in common law jurisdictions. Hong Kong and Singapore continue to retain the common law derivative action within their respective legal frameworks, despite both having enacted statutory derivative actions. This paper considers the situations in which the common law derivative action continues to have practical application in each of these jurisdictions. It then considers whether the common law derivative action should be abolished in these jurisdictions, and if so, what consequential changes should be made to the statutory derivative action framework concurrent with this proposed abolition.
Keywords: Derivative action, Minority shareholders, Company law, Common law, Hong Kong
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