Establishment and improvement of the rule of shareholders′ derivative litigation

The Newly Revised China Corporation Law in Oct.2005 established the rule of the shareholders′ derivative litigation for the first time,which is of higher legislation value.It not only complies with the world advanced legislation tendency,but also conforms to our actual situation in our country.However,there lie stresses and nodes as: how to balance the encouragement and limit,design rational and suitable rules in order to encourage the small shareholders to sue positively to protect the interests of them,prevent abuse of rights to keep the operation of the company.