Law Shareholders


Instructions for #GEA2:

Instructions #GEA2

Today, most of the claims brought against directors and officers in the United States are those alleged in shareholders’ derivative lawsuits. Other nations, however, put more restrictions on the use of such lawsuits. German law, for example, does not provide for derivative litigation, and a corporation’s duty to its employees is just as significant as its duty to the shareholder-owners of the company. The United Kingdom has no statute authorizing derivative actions, which are permitted only to challenge directors’ actions that the shareholders could not legally ratify. Japan authorizes derivative actions but also permits a company to sue the plaintiff-shareholder for damages if the action is unsuccessful.


(1) Research the laws/statutes/rules/court cases governing shareholder derivative lawsuits in one of the nations listed above or any other nation.

(2) In a minimum 300-word post, please:

     (a)  Cite the law/statute/rule/court case governing shareholder derivative lawsuits of the nation you chose; and

     (b)  Explain if the shareholder derivative lawsuit has encouraged businesses to be more or less culturally responsible? Give at least two specific example.

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