{"product_id":"the-derivative-action-and-good-corporate-governance-in-china-von-zhong-zhang","title":"The Derivative Action and Good Corporate Governance in China","description":"\u003cp\u003eGood corporate governance is crucial for the long- term success of Chinese economy. To achieve good  corporate governance, legal liability is essential,  because only legal liability can deter serious  managerial misbehavior. Legal liability comes from  both public and private enforcement of law, but  public enforcement of law has various limitations. In  private enforcement of law, the derivative action is  preferable to the securities class action, not just  because the later is unrealistic in China. For the derivative action to become a reality,  appropriate legal rules should be in place. The  traditional common law is problematic. The strategy  adopted under the Chinese derivative action setting a  minimum shareholding requirement as a condition for  bringing a suit entails that derivative actions would  not be vigorously pursued. The admission of  derivative actions should be decided case by case  according to the interests of the company and the  responsibility of assessing the admissibility of  cases should be assigned to the court rather than to  the company. The assessment should be based on the  probability of success and the potential net  recoveries from the case.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783844327038\"\u003e\u003ch3\u003eEconomic Theories and Legal Rules\u003c\/h3\u003e\u003c\/div\u003e","brand":"Autorenwelt Shop","offers":[{"title":"Softcover - 9783844327038","offer_id":39495960592477,"sku":"9783844327038","price":79.0,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/d7767a04-f1f7-4b07-aeb8-e6adf910a53d.jpg?v=1776403467","url":"https:\/\/shop.autorenwelt.de\/products\/the-derivative-action-and-good-corporate-governance-in-china-von-zhong-zhang","provider":"Autorenwelt Shop","version":"1.0","type":"link"}