Research On The Director’s Duty Of Care

There is a separation between ownership and management because of the need forefficiency which caused the interests gamble between the both. To solve this problem, thecorporate laws imposed the Duty of Care on the corporate directors. Among this, the mostmeaningful rules that worth our concern is the Business Judgement Rule in the Americanlaws, the change of standard of duty of care from subjective to objective in the Britain laws,and the strict standard in the Germany laws. This article have analyzed the related courtdecision in china which have made after the new company law have launched in2005anddrawn the conclusion that in our judiciary practice few shareholders will prosecute directoraccording to the Duty of Care and if they actual did that, the judge will consider theBusiness Judgement Rule even if it has not been written in the law. After comparing thelegislation and judicial practices, the conclusion of the writer is that we should introducethe Business Judgement Rule to our own corporate law; impose different levels of the Dutyof Care to different corporate according to their forms and pay attention to the speculateeffects to The standard of the Duty of Care because the special environment of individualcorporate.