Some Observations about Derivative Action from Perspective of Procedural Law Ali Tahmasebi

Document Type : Scientific Research

Abstract

 
Policymakers seek to protect minority shareholders through designing various procedural and substantive legal rules. The protection is done by miscellaneous ways including derivative action which has been accepted in many legal systems such as USA and England, and Iran’s law has accepted it in joint stock companies so that has let one fifth of shareholders file a lawsuit in the name and on behalf of company against directors and managing director that has damaged company by their own default. Nonetheless the scope of agent’s powers is not obvious in Iran’s law and it is not clear if the shareholder(s) can withdraw his statement of case or claim? In the case of being many litigant shareholders, their unanimity is necessary to make a decision about various issues of trial such as demand to refer to expert, appeal, settlement etc? Can they ask court to issue writ of execution and taking relief? The existence of one fifth shareholders is only essential to bring a claim or its continuity is required? Principally the answer to these questions should be clarified in Code of Civil Procedure, the mentioned code, however, does not have any injunction on these subjects.

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References

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