Derivative Actions Do Not Always Play an Important Role in Corporate Governance in the U.S and the U.K

Abstract

Derivative actions have garnered significant attention in contemporary corporate law circles as a means of recourse for shareholders. As a result, research on derivative actions is expanding in several countries, including the United Kingdom and the United States. However, despite their shared significance in the evolution of derivative actions, these two countries exhibit distinct perspectives on the matter. This scholarly article aims to examine and compare the procedural and substantive variances pertaining to derivative actions in the United Kingdom and the United States. Additionally, this article aims to demonstrate the divergent functions that derivative actions serve in addressing shareholder grievances in these two nations.