Contemplation on Establishing Shareholder Representative Litigation System

Shareholder Representative Litigation System is important to strengthen the supervisory system in corporate governance and to protect the benefit of shareholders, especially that of the minority shareholders. The securities market in China is in great need of this system, whose establishment calls for attention to such key issues as the preceding procedure, the scope of subject of the defendant, qualification restriction of shareholders as the plaintiff, compensation to the plaintiff and the legal force of the judgment.