Brandeis Institute and Lobby 99: Derivative Actions Regulations Should Reflect the Purposes of Compensation and Deterrence

The Brandeis Institute, together with Lobby 99, drafted comments on the draft Company Regulations on Derivative Actions, which were published by the Ministry of Justice in August 2023. 

According to the joint policy paper, the Brandeis Institute suggested that the regulations on derivative claims should reflect the objectives of preventing violations of the law in the capital market and compensating the victims of such violations. The paper emphasized that a statement of these objectives within the framework of the new regulations is necessary to expedite legal proceedings and achieve their desired outcomes, to ensure that those responsible for making faulty decisions are held accountable, to compensate the victims of legal violations and rectify the injustice, and to establish appropriate standards in the corporate sector.