Does more litigation mean more justice for shareholders? The case of derivative actions in Vietnam

Quach, Q 2012, 'Does more litigation mean more justice for shareholders? The case of derivative actions in Vietnam' in M. Siems, S. Van Uystel , and S. Wrbka (ed.) Collective Actions: Enhancing Access to Justice and Reconciling Multilayer Interests?, Cambridge University Press, New York, United States, pp. 221-244.


Document type: Book Chapter
Collection: Book Chapters

Title Does more litigation mean more justice for shareholders? The case of derivative actions in Vietnam
Author(s) Quach, Q
Year 2012
Title of book Collective Actions: Enhancing Access to Justice and Reconciling Multilayer Interests?
Publisher Cambridge University Press
Place of publication New York, United States
Editor(s) M. Siems, S. Van Uystel , and S. Wrbka
Start page 221
End page 244
Subjects Access to Justice
Corporations and Associations Law
Litigation, Adjudication and Dispute Resolution
Summary The derivative action recently has emerged as a promising weapon to combat corporate wrongdoing even in countries that are traditionally not litigious. However the viability of such litigation as a tool is uncertain both from a theoretical and practical perspective. At one extreme of the derivative action debate, its close linkage with good shareholder protection and securities market development is stressed. As a result, transplanting the derivation action (and shareholder litigation in general) is recommended to improve shareholder protection which in its turn helps to foster the securities market. At the other extreme, more litigation is ill-advised since it contains costs which in some cases might exceed its potential benefits or even circumvent its policy objectives. Even though more litigation theoretically might bring more justice to oppressed shareholders in transition economy as Vietnam, in the sense that their rights might be better guaranteed, this justice ultimately depends on the practical institutional environment. If the legal infrastructure of a country does not support a heavy reliance on the court, enforcement through litigation might become a dormant weapon that shareholders cannot use to achieve the justice they aspire to. By using derivative action which has been more and more imported by Asian countries as an example of shareholder litigation, this article will examine the viability of a more litigious enforcement in Vietnam, and come with the conclusion of how desirable the derivative action is in the case of transition economies as Vietnam.
Copyright notice © Cambridge University Press
ISBN 9781107536258
Versions
Version Filter Type
Access Statistics: 113 Abstract Views  -  Detailed Statistics
Created: Thu, 14 Apr 2016, 10:28:00 EST by Catalyst Administrator
© 2014 RMIT Research Repository • Powered by Fez SoftwareContact us