Business, Management and Accounting
8 years ago

US Company Law Protects Directors from Shareholder Attacks with Business Judgment Rule.

Jingji yu guanli
On the Business Judgement Rule in The Company Law Of the United States
FU Chun-ming

Paper Summary

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The United States company law includes the business judgment rule to protect directors from legal action when making decisions for the company. This rule allows directors to have flexibility in managing the company without fear of being sued by shareholders for mistakes. The goal is to balance the interests of shareholders and directors in company management. This rule is important in a market economy to ensure directors can fulfill their duties without constant legal threats.