The Scarcity of Shareholder Derivative Suits in Continental Europe The small number of derivative suits in Continental Europe is often seen as a reason why corporate law is considered under-enforced in these jurisdictions. Scarcity of Derivative Suits Under-enforcement of Corporate Law But the author suggests that cThere is a significant degree ofenforcement through channels of corporate law,beyond enforcement derived from derivative suits. 3If a legal system discourages derivative suits,disgruntled shareholders will take the "Path of Least Resistance"and resort to other enforcement mechanisms. Page·9Page 9 The Scarcity of Shareholder Derivative Suits in Continental Europe The small number of derivative suits in Continental Europe is often seen as a reason why corporate law is considered under-enforced in these jurisdictions. But the author suggests that There is a significant degree of enforcement through channels of corporate law, beyond enforcement derived from derivative suits. If a legal system discourages derivative suits, disgruntled shareholders will take the "Path of Least Resistance" and resort to other enforcement mechanisms. Scarcity of Derivative Suits Under-enforcement of Corporate Law ?