THE SHAREHOLDERS' DERIVATIVE ACTION

Abstract

Despite the legislative availability of derivative suits, shareholder litigation has been received with hostility. Provincial legislation in Ontario and proposed federal reforms attempted to open access to the courts for shareholders wronged by a corporation, but this article contrasts how the private and public views of corporations as institutions have affected that effort. Extensive reference is made to the American legislation after which the Canadian statutes were modeled. The author argues that the courts must take an active role in the regulation of corporations for the statutory reform to make real gains.