There is some risk that a legal system which enables any investor to
challenge corporate activity in the courts can become prone to excessive
litigation. Thus, many legal systems have introduced provisions to protect
management and board members against litigation abuse in the form of tests for
the sufficiency of shareholder complaints, so-called safe harbours for
management and board member actions (such as the business judgement rule) as
well as safe harbours for the disclosure of information. In the end, a balance
must be struck between allowing investors to seek remedies for infringement of
ownership rights and avoiding excessive litigation. Many countries have found