Judicial Introduction Of Business Judgment Rule

The Business Judgment Rule in the Company Law is a rule that was set up gradually in the judicatory practice in the USA court. The central theme of it is to seek the balance between protecting the business decision of the directors and protecting the interest of the company and the shareholders. In other words, business judgment rule is a criterion to judge the appropriateness of executive behavior by the court, and therefore, exemption from liability for the director will be judged if the business behavior is reasonable.The Company Law 2006 of China requires the director and the executive to be loyal and diligent in the company. However, it doesn't explain the content and standard of the duty As a result, it is badly needed the answer to judge what is the difference between appropriateness and inappropriateness for the director in the business behavior. The Chinese learners put forward that whether we could absorb and use the experience of business judgment rule to solve the judicial dilemma. Meanwhile, the feasible solutions are given to guide how to absorb and study from commercial judgment. The author believes that whether we could use the experience of business judgment rule, on which condition should we use and when should we do it are the most important elements in this field. The correct conclusion is based on the practice of China and other thoughts, such as culture, law, and the quality of law enforcement officer as well as the current judicial condition of China. Then a new rule of judgment can be useful and efficient to improve the market economy in China and devote to the construction of law principle.The article includes four parts. In the part of introduction, it put forward a series of question to illustrate the research value, and the creativity from the previous research.The first part argues the theoretical base and the features of business judgment rule according to the origin and its development of the Company Las of Delaware in US. At beginning, the part analyzes the condition of application in commercial judgment. Then, the theoretical analysis is put forward. The nature of the judgment is concluded at the end of the part.The second part compares the attitudes towards the problem in different countries to find out the remarkable feature in business judgment by analyzing the typical commercial cases.The third part argues the necessity, possibility and feasibility. The growing mature of Chinese judicial system provides the possibility for the problem. Part of the learners have done great job on how to absorb and borrow the best part from the commercial judgment.The forth part points out the barriers in borrowing and absorbing based on China's practice, such as culture, law and the quality of law enforcement officer. It suggests the socialism legislative and to rule by law needs urgently a good law principles and practice. Then the social significance of the article would be expressed broadly enough.