Lawsuit System for Shareholder Representatives in China’s Company Law

In recent years,the phenomenon that the large shareholders,members of board,supervisors,and high rank administrators abuse their power to infringe the interests of the company and mid-and-small shareholders is getting increasingly serious.In order to make up for the drawbacks of company management structure and those of other remedies and to better protect the interests of mid-and-small shareholders,China has introduced representative shareholder lawsuit system.In the comparative analysis of the same system in other countries,we can see that most of the system is reasonable and suits China’s situation very well.However,some provisions such as the requesting process before the lawsuit,the sharing of the responsibilities when the plaintiff is cast in a suit,the lawsuit cost and encouraging mechanism need to be further improved.This article attempts to expound these issues and provide corresponding suggestions.