Derivative Actions and Corporate Governance in China: (Asian Commercial, Financial and Economic Law and Policy series)

This book examines corporate governance rules in China, and highlights the deficiencies in current company law, with the purpose of arguing for a more effective derivative action mechanism, for the benefit of shareholders and their companies. Throughout the book, Jingchen focuses on how to build a more effective, accessible and balanced mechanism for derivation action in order to promote more sound corporate governance in China. He examines two significant questions, namely - the possibility of transplanting legal regimes and rules from other jurisdictions, and how this sits against the practical experiences from the last fifteen years. The book includes discussions of both the legal issues that hinder the efficient and sound enforcement of derivative claims, as well as suggestions for reform, supported and underpinned by corporate governance theories. Derivative Actions and Corporate Governance in China will be a key resource for academics, practitioners, fund managers and postgraduate students in the fields of Asian law and corporate law and governance.

Table of Contents:
Contents: 1. Introduction to derivative actions and corporate governance in China 2. The regulatory framework and development trajectory of derivative actions in China 3. Corporate governance in China 4. Effectiveness and efficiency of derivative action under a unique Chinese corporate governance regime: Incentives, accessibility and eligibility 5. Funding derivative actions and incentives to commence litigation 6. Trends and developments in Chinese Company Law: The application of the derivative action scheme in the past 14 years 7. Synchronising norms and institutions – towards a more effective, balanced and accessible settings of derivative action scheme in China 8. Conclusion to derivative actions and corporate governance in China Index

About the Author :
Jingchen Zhao, Professor of Law, Nottingham Law School, Nottingham Trent University, UK

Review :
‘This new monograph by Professor Jingchen Zhao casts a light upon the use of derivative actions in the law of shareholder protection in China. Zhao’s well written and superbly researched text examines in forensic detail this relatively new feature of Company Law in China. It sets the scene by offering valuable insights into the Corporate Law and Governance context in China. The text reflects expertly upon the Chinese position after some 15 years of experience of derivative actions in that jurisdiction. It is a monograph that should be read by all scholars of comparative Company Law. Practitioners with links to and interest in shareholder protection law in China will find it a valuable vademecum.’ ‘This fascinating new book by Professor Jingchen Zhao provides a distinctive, ambitious, and eminently rigorous study of derivative actions and corporate governance in China. The treatment of the subject area is significant, original, and a compelling read. Insightful and timely, it is a must-read for academic company lawyers across the world and should be on the reading list for any company law practitioners, fund managers, and entrepreneurs, and any postgraduate course on company law.’ ‘Derivative actions are potentially powerful weapons; much has been written about them but there has not been a really comprehensive study of them in China, and yet they are prospectively of great importance. In this work, and employing several pertinent research methods, Professor Zhao engages in a very extensive critical analysis of derivative actions in China and in the broader context of corporate governance that is most admirable and robust. Furthermore the study is very impressively sourced and clearly written.’