Studies Party Shareholder Derivative Litigation System

The shareholder derivative action has been introduced into the present Company Law of China, the purpose of introducing the system is:when some conditions satisfied, the shareholders has the right to sue in their own name for the person infringing the interests of the company, in order to restrict the illegal behavior of majority shareholders and protect the lawful rights of the minority. Considering the derivative action’s own characters attributes, different countries, while encouraging it, work out relative systems to restrict and constrain it. In the shareholder derivative action, litigant system is a very important aspect. Confirming the litigant system plays a crucial role in the rational use of derivative action, and understanding the legal sources of derivative litigation. Strictly defining the qualification and condition of litigants in derivative action, ascertaining their position and duty in the action, ensuring the function of the system, will not only effectively protect the legal rights of medium and small shareholders, but also successfully deter the action without justification, prevent the abuse of action.However, the present Company Law almost did not involve the litigant system. In this dissertation, based on the explaining of the concept, origin and function of shareholder derivative action, the author analyses the qualification restriction of plaintiff, the scope of defendant, the status of the company and other shareholders in the shareholder derivative action, and give some suggestion on the construction of the litigant system of shareholder derivative action.