The business judgment rule is used by American courts to establish whether a director has
fulfilled his duty of care. It is based on the concept that the directors are legally empowered
to manage a corporation's affairs, and the courts accordingly do not interfere with the exercise
of those powers unless a board's action is tainted by fraud or self-interest. The courts will not
review a business decision where, acting in good faith, the board has truly applied itself to
making an informed decision. In certain circumstances, where self-interest on the part of
directors is more likely to be a factor, a stricter test is applied. The business judgment rule
is implicit in the judgments of English and South African courts and the King Committee has
recommended its formal recognition in South Africa. The need for such formal recognition
and stricter interpretation of the duty of care and skill discussed. / Private Law / LL.M.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:uir.unisa.ac.za:10500/16728 |
| Date | 11 1900 |
| Creators | Dyke, Michael John |
| Contributors | Havenga, Michele Kyra |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Dissertation |
| Format | 1 online resource (x, 37 leaves) |
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