China suspected of banning listed company derivatives action

Author: | Published: 17 May 2011

The lack of derivatives action against Chinese-listed companies points to the existence of an internal directive to China’s courts specifying not to take such lawsuits.

George Washington University Law School’s modern Chinese law professor, Donald Clarke explained in a seminar in Hong Kong this week that the lack of any derivative suits filed on behalf of listed companies indicated circulation of a court directive dissuading such action was likely. But no direct...