earticle

영어

The representative director system, which has grown companies into large enterprises. But behind this high growth of companies, the abuse of the representative director system gloomily prevailed. When the director damage company, the company must file a claim against the director for compensation. At this time a auditor bring a suit. But if he don't file a action, the company suffers damage. Then the shareholder with at least one percent of the total outstanding shares may bring a derivative suit(korean commercial code §403). This shareholder's representative suit is an efficient method to raise transparency of corporate management to improve corporate governance. In this paper, it deals with (1) what kind system the shareholder's representative suit is, (2) the company can participate the shareholder's representative suit for the shareholder (plaintiff), (3) the company is able to join in the shareholder's representative suit for the defendant(director).