The Sadia and Aracruz lawsuits filed in Brazil are functionally equivalent to
U.S. derivative suits, not to class actions. But procedural aspects of Brazilian
derivative suits differ from their U.S. counterparts. Delaware law, for example,
requires that, prior to bringing the suit, the shareholder first make a demand
on directors to have the corporation bring the suit itself,60 or plead that such
a demand would be futile.61
In contrast, the Brazilian derivative suit must be approved by a resolution
in a general meeting of shareholders. The shareholders decide whether the
corporation will bring a civil liability action against an officer or director
for losses caused to the corporation’s property.62 If the shareholders approve