A Comparative Study of Funding Shareholder Litigation

1. Front Matter

   Pages i-xvii

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2. Introduction

   • Wenjing Chen

   Pages 1-13

3. An Overview of Shareholder Litigation

   • Wenjing Chen

   Pages 15-66

4. Rules on the Costs and Funding of Shareholder Litigation

   • Wenjing Chen

   Pages 67-89

5. Funding Shareholder Litigation: Public Funding

   • Wenjing Chen

   Pages 91-136

6. Third Party Litigation Funding (TPLF) of Shareholder Litigation

   • Wenjing Chen

   Pages 137-188

7. Funding Alternatives Through Fee or Cost Arrangements

   • Wenjing Chen

   Pages 189-216

8. Policy Proposals for Solving Funding Problems with Shareholder Litigation in China

   • Wenjing Chen

   Pages 217-225

9. Conclusion

   • Wenjing Chen

   Pages 227-240

10. Back Matter

    Pages 241-264

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This book studies the funding problems with shareholder litigation through a functionally comparative way. In fact, funding problems with shareholder lawsuits may largely discourage potential shareholder litigants who bear high financial risk in pursuing such a claim, but on the other hand they may not have much to gain. Considering the lack of incentives for potential shareholder claimants, effective funding techniques should be in place to make shareholder actions function as a corporate governance tool and discipline corporate management. The book analyzes, among others, the practice of funding shareholder litigation in the Australia, Canada, the UK, the US and Israel, and covers all of the typical approaches being used in financing shareholder litigation in the current world. For instance, Israel and Canada (Quebec and Ontario) are probably unique in having a public funding mechanism for derivative actions and class actions, while Australia is the country where third party litigation funding is originated and is growing rapidly. Based on this comparative research, the last part of this book discusses how to fund shareholder litigation in China in context of its social and legal background and what kind of problems need to be solved if certain funding techniques are used.

• shareholder litigation
• funding problems
• corporate governance
• third party litigation funding
• lawyers’ funding
• company’s funding
• public funding
• shareholder protection
• private enforcement
• state owned enterprises

• East China University of Political Science and Law (ECUPL), Shanghai, China

  Wenjing Chen

Dr Wenjing Chen is an assistant professor of East China University of Political Science and Law (ECUPL Shanghai, China) with a master’s degree in European and Comparative Law from Ghent University (Belgium). She completed her PhD in Financial Law Institute (FLI) of Ghent University with the fund provided by Chinese Scholarship Council (CSC). Her research interests focus on the company law, particularly on those issues concerning shareholder protection and its practical perspectives. She has published articles in, among others, Company Lawyer, International Journal of Private Law.

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