Application of Business Judgment Rule in the Russian Realities

DOI: 10.33917/es-4.162.2019.126-131

The clause considers The Business Judgment Rule with which help the management can legitimize the decisions, supposing thus honest mistake. The given rule gives wide discretion at accepting the decisions by organs of government (management, board of directors). Using the given mechanism, the company management can protect itself in court from charges from shareholders. The modern Business Judgment Rule makes certain demands concerning managerial decisions and their consequences. The author considers application of the Business Judgment Rule taking into account additional criteria in the Russian realities

References:

1. Lutsenko S.I. Teoriya komandnogo proizvodstva v korporativnom upravlenii: pravo na zhizn’ [The Theory of the Team Production in Corporate Governance: the Right to Life]. Ekonomicheskie strategii, 2015, no 1, pp. 124. 2. Arsht S. The Business Judgment Rule Revisited. Hofstra Law Review, 1979, vol. 8, pp. 9–100. 3. Johnson L. The Modest Business Judgment Rule. The Business Lawyer, 2000, vol. 55, pp. 634, 639. 4. Smith D.G. The Modern Business Judgment Rule. Brigham Young University J. Reuben Clark Law School Legal Studies Research Paper Series, 2015, p. 6.