Should we enact a business judgement rule for Hong Kong
As the complexity and sophistication of business activities increase with operations extending beyond borders and across industries, so too does the demand on management – especially on boards of directors of companies – to ensure that appropriate standards of corporate governance are implemented and enforced. However, one must question whether these standards have become so onerous as to disincentivise otherwise qualified individuals from joining corporate boards.
Commencing with a concise overview of the duties and responsibilities expected of directors, the speaker will advocate – through a review of the approaches in Australia and the United States of America – for the enactment of a statutory Business Judgment Rule to afford directors with adequate protection when they are alleged to have breached their duty of care to the company on which board they serve.