A Comparative Study of Shareholders' Derivative Actions

In this book shareholders' derivative actions in England, the US, Germany and
China are being compared. Western countries among themselves take differing
approaches towards derivative action in practice, including its very role and
the mechanisms for regulating it.

As far as the function of derivative action is concerned, the author concludes
that

(1) derivative actions play different roles in all these countries;

(2) their function may vary according to the agency problems to be solved and
the type and size of the companies involved;

(3) derivative action is only one method in a comprehensive system of
corporate governance.

Comparative study shows that the issue of how to strike a balance between
corporate efficiency and protection for the company and its minority
shareholders is key in derivative actions.