Beyond Our Borders: Derivative Actions in Other Nations

Today, shareholders derivative suits account for most of the claims brought against corporate directors and officers in the United States. Other nations, however, put more restrictions on the use of such suits. German law, for example, does not provide for derivative litigation, and a corporations duty to its employees is just as significant as its duty to its shareholder-owners. 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.

WRITE the below in a bold or color format that is different from the question itself. Answer by incorporating facts, laws, rules, factors, etc., into your argument.

Question A: Do corporations benefit from shareholders' derivative suits? Fully explain.