Derivative Litigation and Corporate Governance: A Problem of Abusive Proceedings
It has been argued in this article that endeavours to improve corporate governance should be diverted to change the perception of corporate law. Managerial unethical practices are dealt with corporate governance strategies; rather, they should be addressed by empowering shareholders to initiate proceedings against errant directors, who are primarily accountable to shareholders. Derivative litigation is not only a useful tool to recover losses caused by the directors to companies, but it may also serve as a deterrent against managerial wrongdoings. However, derivative ligation may lead to abusive proceedings in some circumstances where some opportunistic shareholders may use this very kind of private enforcement mechanism to achieve their bad motives and private gains. This issue can be addressed by allowing only merit-based litigation through screening and filtration of valuable litigation, which could serve the larger interest of the corporations.
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Derivative Litigation, Corporate Governance, Abusive Proceedings, Unethical Practices
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(1) Aamir Abbas
Assistant Professor, College of Law, Government College University, Faisalabad, Punjab, Pakistan.
(2) Muhammad Babar Shaheen
Lecturer, College of Law, Government College University, Faisalabad, Punjab, Pakistan.
(3) Muhammad Waqas Sarwar
Lecturer, College of Law, Government College University, Faisalabad, Punjab, Pakistan.
Cite this article
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APA : Abbas, A., Shaheen, M. B., & Sarwar, M. W. (2024). Derivative Litigation and Corporate Governance: A Problem of Abusive Proceedings. Global Legal Studies Review, IX(III), 35-40. https://doi.org/10.31703/glsr.2024(IX-III).03
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CHICAGO : Abbas, Aamir, Muhammad Babar Shaheen, and Muhammad Waqas Sarwar. 2024. "Derivative Litigation and Corporate Governance: A Problem of Abusive Proceedings." Global Legal Studies Review, IX (III): 35-40 doi: 10.31703/glsr.2024(IX-III).03
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HARVARD : ABBAS, A., SHAHEEN, M. B. & SARWAR, M. W. 2024. Derivative Litigation and Corporate Governance: A Problem of Abusive Proceedings. Global Legal Studies Review, IX, 35-40.
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MHRA : Abbas, Aamir, Muhammad Babar Shaheen, and Muhammad Waqas Sarwar. 2024. "Derivative Litigation and Corporate Governance: A Problem of Abusive Proceedings." Global Legal Studies Review, IX: 35-40
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MLA : Abbas, Aamir, Muhammad Babar Shaheen, and Muhammad Waqas Sarwar. "Derivative Litigation and Corporate Governance: A Problem of Abusive Proceedings." Global Legal Studies Review, IX.III (2024): 35-40 Print.
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OXFORD : Abbas, Aamir, Shaheen, Muhammad Babar, and Sarwar, Muhammad Waqas (2024), "Derivative Litigation and Corporate Governance: A Problem of Abusive Proceedings", Global Legal Studies Review, IX (III), 35-40
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TURABIAN : Abbas, Aamir, Muhammad Babar Shaheen, and Muhammad Waqas Sarwar. "Derivative Litigation and Corporate Governance: A Problem of Abusive Proceedings." Global Legal Studies Review IX, no. III (2024): 35-40. https://doi.org/10.31703/glsr.2024(IX-III).03