A comparative study of shareholders' derivative actions. Engeland, the United States, Germany and China

Where injuries have been done to a company, the general principle is that a suit against this misconduct should be pursued by that company and that damages should be awarded to that company. However, in certain circumstances (such as when the company is controlled by the wrongdoer and therefore cannot bring an action by itself), an individual shareholder or a group of minority shareholders of the injured company can bring a derivative action against this misconduct in their own name in order to protect the interests of that company and the shareholders thereof. This fact notwithstanding, this exception to the general principle may also have its disadvantages, for example, corporate management may be unjustly interfered with or the shareholdersm ay not have sufficient incentive to bring the action. Because of both its justifications and disadvantages, there have always been different attitudes towards the derivative action. ... Zie: summary