Title: Is Israel's public funding feasible to solve funding problems with shareholder derivative actions in China?

Authors: Wenjing Chen

Addresses: East China University of Political Science and Law, No 1575 Wan Hang Du Road, 200042, Shanghai, China

Abstract: In order to solve funding problems with shareholder derivative actions, funding provided by public authorities (public funding) is proposed to be applied. Israel is a country where such funding is used. This article studies the Israeli experience of public funding of derivative actions, and further examines its potential for China. Through the investigation of Chinese judicial system, social background (the 'inside system' theory, 'local protectionism', GDP worship) and deficiencies of potential regulatory authorities of public funding (lacks of independence), a negative conclusion is made but future potential for public funding in China still proves to be remained.

Keywords: public funding; public authorities; Chinese judicial system; non-profit organisations; reform; Israel; shareholder derivative actions; China; regulation.

DOI: 10.1504/IJPL.2015.076600

International Journal of Private Law, 2015 Vol.8 No.2, pp.119 - 139

Received: 17 Jun 2014
Accepted: 05 Jun 2015
Published online: 17 May 2016 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article