commercial law;Commercial Law
Comparative Corporate Governance
Write in journal-style and in 5000 words.
Choose one question:
1.“Most legal systems require directors to act with due care in their dealings on behalf of the company. In order to comply with this duty, conduct consistent with that of a reasonable businessman will, in general, suffice but there are differences in the standard applied and its definition. Different approaches exist with regard to the matter of meeting the due care test and how much leeway directors are granted.”
Critically discuss the above statement. In your answer, assess the position taken in two jurisdictions, namely Australia and the UK in regards to the duties of care, skill and diligence of company directors. In doing so, consider whether the adoption of a business judgment rule, similar to that of the US, is important to protect company directors.
2.‘Non-executive directors cannot effectively monitor management, nor can they bring a neutral viewpoint to developing policy if they are dependent of the executives.’
Do you agree with this statement?
3.It is frequently suggested that the way forward for corporate governance rests quite strongly on greater shareholder engagement. Critically consider whether this enthusiasm for shareholder engagement is justified or whether it is based on unrealistic expectations.
