University of New South Wales Faculty of Law Research Series
Last Updated: 12 December 2008
The Statutory Derivative Action in China: Critical Analysis and Recommendations
This paper will shortly be available for download.
This paper has been published in Berkeley Business Law Journal (2007) (2) Vol 4.
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.