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Legal Study on Business Judgment Rule in China

Author: HuangZuoZuo
Tutor: ZengDaPeng
School: East China University of Political Science
Course: Legal
Keywords: Director BJR Introduction &Perfection
CLC: D922.291.91
Type: Master's thesis
Year: 2011
Downloads: 66
Quote: 0
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Abstract


The fiduciary duties of corporate senior officer in China has greatly strengthened by the new revised Corporation Law, where stipulates the senior officer owe duty of care and duty of loyalty to the corporation and shareholders, and undertook legal liability of his signature on commercial decision, for protecting minority shareholders and perfect corporation governance; Also, the Corporation Law bestows shareholder to take direct suit against senior when their action damages corporation’s interests. But comparing with director’s duty of care liability system in other countries, we’ll find out that there are many deficiencies in our legislation and legal practice, where need further perfection.In judicial practice, the deficiency is the court is used to excessively examinees the corporate senior officer, who usually play a strong roles to define wreathe the directors breaks fiducially duty, which leads to badly intervening to the corporate inner governance. So in my mind, we should revise our Corporation Law and adapt a form of judicial interpretation issued by the Supreme People’s Court to crystallize the legal system of director’s duty of care and applying conditions of BJR, for the purpose of protect the inner shareholders and the corporate autonomy, makes the two balances.Besides to the preface and the conclusion parts, the paper consists of four parties, their contents are as follows:Part One is mainly about the initial situations and validity of BJR, along with its function and essence.Part Two is mainly about the stipulation and court practice of BJR in the U.S.A, British and Australia.Part Three is mainly about the court practice of BJR in China.Part Four is mainly about the necessity of introducing BJR to China, and how to perfect it.

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CLC: > Political, legal > Legal > Chinese law > Economic Law > Corporate law, company law
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