Today, most of the claims brought against directors and officers in the United States are those alleged in shareholders’ derivative lawsuits. Other nations, however, put more restrictions on the use of such lawsuits. German law, for example, does not provide for derivative litigation, and a corporation’s duty to its employees is just as significant as its duty to the shareholder-owners of the company. The United Kingdom has no statute authorizing derivative actions, which are permitted only to challenge directors’ actions that the shareholders could not legally ratify. Japan authorizes derivative actions but also permits a company to sue the plaintiff-shareholder for damages if the action is unsuccessful.
(1) Research the laws/statutes/rules/court cases governing shareholder derivative lawsuits in one of the nations listed above or any other nation.
(2) In a minimum 250-word post, please:
(a) Cite the law/statute/rule/court case governing shareholder derivative lawsuits of the nation you chose; and
(b) Explain if the shareholder derivative lawsuit has encouraged businesses to be more or less culturally responsible? Give at least one specific example.
The study has been divided into six chapters and they are organized as follows: Chapter 2 reviews the literature and past statistics along with some key determinant that have been used in earlier studies. Chapter 3 will give a brief introduction and background of U.K banking sector and summarizes its structure and current scenario .Chapter 4 gives us a detailed description of data and methodology used in the study further, it provides a brief introduction used in the study. Chapter 5 gives the description of empirical results and discussions. Finally the Chapter 6 provides the conclusion and limitation of the given study. Chapter 2 RELEVANT THEORIES AND LITERATURE REVIEW 2.1 Introduction: The purpose of this chapter aims to provide a theoretical framework of the factors that affect bank profitability. 2.2 Bank Profitability Like any business, the main aim of banks is by earning profits which is in turn means earning more money that what they pay in expenses. The bulk of profit earned by banks come from the fees that it charges in return for services rendered to its customers and the interest returns on its assets. The major expense is the interest paid on its liabilities. Measures of Profitability Traditionally the measures of profitability of any organization are its return on Assets (ROA) and Return of Equity (ROE). Where assets are used by organizations for the generation of income, Loans and securities are assets for a bank and provide maximum of a bank’s profit. However, for the generation of loans and securities a bank must have money, which is generated primarily from bank’s owners in the form of Bank Capital, Depositors and money that it borrows from peer banks or by sale of debt securities.>GET ANSWER