Publication details
Business judgement rule in Czech Corporations Act
| Authors | |
|---|---|
| Year of publication | 2013 |
| Type | Article in Periodical |
| Magazine / Source | Juridical Tribune |
| MU Faculty or unit | |
| Citation | |
| Web | http://www.tribunajuridica.eu/arhiva/An3v2/9%20Koziak.pdf |
| Field | Law sciences |
| Keywords | Business Judgment Rule; Corporations Act; Company Officers; Liability of Company Officers |
| Description | Czech private law is currently undergoing a thorough transformation. This inclundes adoption of a brand new Corporations Act, which is to supersede the current Commercial Code. The new legislation introduces several new rules governing liability of company executive officers. One of these is the business judgment rule. It should provide company executive officers with a certain level of protection against litigantion – if specific terms are met, it is presumed, that they carried out their responsibilities with proper care. I intend to demonstrate in this article that the Czech business judgment rule is flawed, despite the fact that it draws from foreign examples and that this regulation, although seemingly groundbreaking, in fact changes nothing in examination of the decisions of the company executive officers in Czech Republic. The main goal of this article is therefore to analyze and criticize the business judgment rule in the new Czech legislation and to compare it to notable foreign legal systems. |
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