September 16, 2025Global Legal Studies ReviewOpen Access

Derivative Litigation and Corporate Governance: A Problem of Abusive Proceedings

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Derivative litigation serves as a recovery and deterrent tool against improper actions by directors, promoting corporate governance.
Opportunistic use of derivative litigation may lead to manipulative proceedings, highlighting the need for screening and merit-based approaches.
Empowering shareholders to initiate legal actions against errant directors enhances accountability within corporate governance frameworks.
Improved corporate governance is linked to altering perceptions of corporate law, focusing not only on director practices but also on shareholder involvement.

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This discussion highlights how derivative litigation can improve accountability among shareholders, suggesting efficient litigation methods.

Abbas et al. (2024) studied this question.

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This discussion highlights how derivative litigation can improve accountability among shareholders, suggesting efficient litigation methods.