The Derivative Action and Good Corporate Governance in China

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The book emphasizes the importance of legal liability in fostering good corporate governance, particularly within the Chinese economy. It critiques the limitations of public law enforcement and advocates for private enforcement through derivative actions, which are deemed more suitable than securities class actions in China. The author argues for the establishment of appropriate legal frameworks to facilitate these actions, suggesting that courts should evaluate cases based on their merits rather than companies deciding admissibility, to enhance accountability and deter managerial misconduct.