Shareholder Derivative Litigation in China: Empirical Findings and Comparative Analysis

(2012) 27 Banking and Finance Law Review 619

37 Pages Posted: 4 Sep 2012

See all articles by (Robin) Hui Huang

(Robin) Hui Huang

Chinese University of Hong Kong - Faculty of Law; 华东政法大学(East China University of Political Sicence and Law); University of New South Wales - Faculty of Law

Date Written: August 8, 2012

Abstract

This paper presents the results of a comprehensive empirical study on China’s derivative suits as introduced in the 2005 Company Law reform that provides insight into the way Chinese courts have interpreted and applied this remedy. It is found that the statutory regime appears to have had a noticeable impact in terms of the number of cases brought thereunder and the benefits realized from them. However, the key finding that all cases involve private companies comes as a disappointment given the intended role of China’s derivative suits in improving the corporate governance of public companies. The study also produces other important findings on various aspects of the derivative suit remedy. From a comparative perspective, the empirical findings are analysed and based on such analysis, reform proposals are set out to enhance the efficacy of the regime of shareholder derivative suits in China.

Keywords: derivative suits, China, empirical study, comparative perspective

JEL Classification: K22, K41, K42, G34

Suggested Citation

Huang, (Robin) Hui, Shareholder Derivative Litigation in China: Empirical Findings and Comparative Analysis (August 8, 2012). (2012) 27 Banking and Finance Law Review 619 , Available at SSRN: https://ssrn.com/abstract=2140613

(Robin) Hui Huang (Contact Author)

Chinese University of Hong Kong - Faculty of Law ( email )

Shatin, New Territories
Hong Kong
852-39431805 (Phone)
852-29942505 (Fax)

HOME PAGE: http://www.law.cuhk.edu.hk/people/huang-hui-robin.php

华东政法大学(East China University of Political Sicence and Law) ( email )

1575 Wanhangdu Rd.
Changning, Shanghai 200042
China

University of New South Wales - Faculty of Law ( email )

Sydney, New South Wales 2052
Australia
61-2-9385 9649 (Phone)
61-2-9385 1175 (Fax)

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