Business, Management and Accounting
8 years ago

Corporate directors face personal liability for failing to exercise good faith.

Vanderbilt law review
How to Be Good: The Emphasis on Corporate Director's Good Faith in the Post-Enron Era
Thomas M. Rivers

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The article discusses how corporate scandals like Enron led to a focus on directors' good faith in performing their duties. Courts are holding directors accountable for their decisions, even without evidence of self-dealing. The SEC is also cracking down on directors who are reckless in overseeing management. This shift in focus aims to prevent future scandals and protect shareholders.