Studies On Business Judgment Rule

Business Judgment Rule is the rule which the judge in the trial of the directors duty of care and diligence obligation to exempt the directors in the judicial practice in the United States courts. Under the Business Judgment Rule, when the director of business decision-making process in good faith, reasonable interpretation of known circumstances, is not associated with the decision, made for the best interests of the company, the business decision was considered as the appropriate business decisions, Business Judgment Rule face to the normal risks of business activities, it can effectively solved the problem which the operated the business of director.This paper aims to study two legal system, one of common law, represented by the United States, Britain, Australia, the case law of the State and how to use the Business Judgment Rule, and second, the civil law system, represented by Japan, Germany, Korea, and what was the attitude to the Business Judgment Rule. In the comparative analysis, in accordance with national legal environment, firm characteristics, we can divided the application of Business Judgment Rule into three styles, namely low, intermediate, advanced, the United Kingdom is a low-level reference model, the U.S. is middle and Australia is high. This article through introducing the typical cases to meet business judgment challenges in China, and from some aspects include our legislation, judicial practice, and encourages fair competition to study the the necessity of business judgment in Chinese courts in judicial practice . China should take the form of statutory law, judicial interpretation of the Supreme Court as a way to introduce supplementary business criterion. Absorption of other countries by drawing on a commercial criteria to judge the situation, modify the "Company Law", a clear criterion of four essential elements of business, and strive to tap the best way to apply the guidelines, from the established principles of procedural review, clearly the burden of proof in terms of migration issues commercial criterion.