From great expectations to an even greater failure - the case of Montenegrin regulatory framework on shareholder derivative suits as an incentive for rethinking the concept itself
The author utilizes a case study of Montenegrin regulatory concept of shareholder derivative suits in order to demonstrate, by comparing its features with such concepts in other legal systems and features marked as favorable factors in legal theory, that its failure, as well as the failure of deriva...
| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Bucharest University of Economic Studies
2016-12-01
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| Series: | Juridical Tribune |
| Subjects: | |
| Online Access: | http://tribunajuridica.eu/arhiva/An6v22/1%20Savkovic.pdf |
| _version_ | 1797219083726356480 |
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| author | Vladimir Savković |
| author_facet | Vladimir Savković |
| author_sort | Vladimir Savković |
| collection | DOAJ |
| description | The author utilizes a case study of Montenegrin regulatory concept of shareholder derivative suits in order to demonstrate, by comparing its features with such concepts in other legal systems and features marked as favorable factors in legal theory, that its failure, as well as the failure of derivative suits in other countries cannot be a priori considered as result of inadequate approach of the legislator. Along with some other important legal systems, shareholder derivative litigation in United States is also analyzed, since its track record shows that it is virtually the single at least relatively successful system of derivative suits so far. This analysis is made so as to distinguish the particular
and in many ways unique features of the shareholder derivative litigation concept in United States that enabled the relative success of it. As result of the research conducted and analyses made, the author argues that there is an inherent flaw in the very foundation of the concept of shareholder derivative suits, which generally hinders the use of this legal mechanism. Finally, the author finds that this flaw is deeply rooted in what is known today
in theory of company law as the first agency problem. |
| first_indexed | 2024-04-24T12:28:01Z |
| format | Article |
| id | doaj.art-e98fff92aa444a27a4bd7d1e284f6f06 |
| institution | Directory Open Access Journal |
| issn | 2247-7195 2248-0382 |
| language | English |
| last_indexed | 2024-04-24T12:28:01Z |
| publishDate | 2016-12-01 |
| publisher | Bucharest University of Economic Studies |
| record_format | Article |
| series | Juridical Tribune |
| spelling | doaj.art-e98fff92aa444a27a4bd7d1e284f6f062024-04-08T07:42:59ZengBucharest University of Economic StudiesJuridical Tribune2247-71952248-03822016-12-0162721From great expectations to an even greater failure - the case of Montenegrin regulatory framework on shareholder derivative suits as an incentive for rethinking the concept itselfVladimir Savković0University of Montenegro, Faculty of LawThe author utilizes a case study of Montenegrin regulatory concept of shareholder derivative suits in order to demonstrate, by comparing its features with such concepts in other legal systems and features marked as favorable factors in legal theory, that its failure, as well as the failure of derivative suits in other countries cannot be a priori considered as result of inadequate approach of the legislator. Along with some other important legal systems, shareholder derivative litigation in United States is also analyzed, since its track record shows that it is virtually the single at least relatively successful system of derivative suits so far. This analysis is made so as to distinguish the particular and in many ways unique features of the shareholder derivative litigation concept in United States that enabled the relative success of it. As result of the research conducted and analyses made, the author argues that there is an inherent flaw in the very foundation of the concept of shareholder derivative suits, which generally hinders the use of this legal mechanism. Finally, the author finds that this flaw is deeply rooted in what is known today in theory of company law as the first agency problem.http://tribunajuridica.eu/arhiva/An6v22/1%20Savkovic.pdfshareholder derivative suitsMontenegrin regulatory frameworklegislatorfirst agency problemincentivesinherent flaw |
| spellingShingle | Vladimir Savković From great expectations to an even greater failure - the case of Montenegrin regulatory framework on shareholder derivative suits as an incentive for rethinking the concept itself Juridical Tribune shareholder derivative suits Montenegrin regulatory framework legislator first agency problem incentives inherent flaw |
| title | From great expectations to an even greater failure - the case of Montenegrin regulatory framework on shareholder derivative suits as an incentive for rethinking the concept itself |
| title_full | From great expectations to an even greater failure - the case of Montenegrin regulatory framework on shareholder derivative suits as an incentive for rethinking the concept itself |
| title_fullStr | From great expectations to an even greater failure - the case of Montenegrin regulatory framework on shareholder derivative suits as an incentive for rethinking the concept itself |
| title_full_unstemmed | From great expectations to an even greater failure - the case of Montenegrin regulatory framework on shareholder derivative suits as an incentive for rethinking the concept itself |
| title_short | From great expectations to an even greater failure - the case of Montenegrin regulatory framework on shareholder derivative suits as an incentive for rethinking the concept itself |
| title_sort | from great expectations to an even greater failure the case of montenegrin regulatory framework on shareholder derivative suits as an incentive for rethinking the concept itself |
| topic | shareholder derivative suits Montenegrin regulatory framework legislator first agency problem incentives inherent flaw |
| url | http://tribunajuridica.eu/arhiva/An6v22/1%20Savkovic.pdf |
| work_keys_str_mv | AT vladimirsavkovic fromgreatexpectationstoanevengreaterfailurethecaseofmontenegrinregulatoryframeworkonshareholderderivativesuitsasanincentiveforrethinkingtheconceptitself |