Business Judgment Rule Hong Kong

The directors are the minds of the company and all the important decisions regarding.

Business judgment rule hong kong. The statutory business judgment rule is not a carte blanche for directors. The bjr is a judicial standard of review not a duty. If the bjr is satisfied directors are not personally liable and a corporate action will not be overturned.

See all articles by douglas m. Rationale for the business judgment rule. A statutory business judgment rule for hong kong.

The principle underlying the rule is to allow these persons to make business decisions without fear of frivolous lawsuits. They are presently subject to ever increasing scrutiny and much of the recent reforms around the world have adopted a regulatory philosophy. The business judgment rule is based on the common principle of company law smith 2015.

Hong kong law journal vol. As it requires directors to make conscious decisions by actively considering matters and analysing available evidence the discharge of oversight responsibilities such as monitoring the affairs and policies of the company as well as the maintaining of familiarity with its financial position logically cannot be business judgment. A statutory business judgment rule for hong kong.

Inproceedings branson2004balancingts title balancing the scales. The current business judgment rule provides a possible safe harbour to protect officers from claims they have acted without the appropriate level of care and diligence. A statutory business judgment rule for hong kong.

Toronto london sydney and hong kong. The business judgment rule provides a presumption that a director or officer acted appropriately and in the interests of the company. The lens through which a court may judge the propriety of board action.