Abstract
[full article and abstract in Lithuanian; abstract in English]
 The reasons which led to the formation of the business judgment rule and its implementation are discussed in the present article. The courts usually have the competence to rule on the legality of the defendant’s actions and (or) their civil liability. Courts’ competence is being limited when the legality of the business decisions is analyzed and (or) the case of civil liability of the board members‘ or chief executive officer‘s of the private legal entities is decided. Due to the application of the business judgment rule the courts should abstain from evaluating the legality of the business judgments of the private legal entities, if they turned to be unprofitable or profitable not enough where such decisions were made by complying with the duties applied to the board members or chief executive officers. Motives, which justifies special civil liability regime of the directors are analyzed in the article.
 Summary
 Although the courts usually have the competence to rule on the legality of the defendant’s actions and (or) their civil liability, Courts’ competence is being limited when the legality of the business decisions is analyzed and (or) the case of civil liability of the board members‘ or chief executive officer‘s of the private legal entities is decided due to the appli- cation of the business judgment rule. As the business judgment rule has been identified by the case law of the Supreme Court of Lithuania, in this article author analyzes the reasons which led to the formation of the business judgment rule and its implementation in the jurisdiction of its origin – United States of America. Conclussions demonstrate that business judgment rule was implemented in the US case law with the purpose to guarantee and declare clearly that the ultimate decision maker within the private legal entity are board members or chief executive officers and not the courts. Business judgment rule works as a guarantee for the executives that they will not be held liable or criticized for the well-informed and fair decisions they make in the course of the company’s management. It encourages board members and chief exec- utive officers to take the risk needed for the development of company.
Highlights
Šiame straipsnyje analizuojamos priežastys, dėl kurių susiformavo verslo sprendimo taisyklės institutas
The reasons which led to the formation of the business judgment rule and its implementation are discussed in the present article
Due to the application of the business judgment rule the courts should abstain from evaluating the legality of the business judgments of the private legal entities, if they turned to be unprofitable or profitable not enough where such decisions were made by complying with the duties applied to the board members or chief executive officers
Summary
Valdymo organų nariai nėra neklystantys – jie daro klaidų[9]. Nesant verslo sprendimo taisyklės apsaugos, ribojančios vadovų civilinę atsakomybę už neatsargų veikimą, neatsirastų kompetentingų asmenų, kurie imtųsi eiti valdymo organų narių pareigas. Kompetentingi valdymo organų nariai nesiims eiti pareigų be užtikrinimo dėl apsaugos nuo civilinės atsakomybės už sąžiningas klaidas[11]. Verslo sprendimo taisyklė yra svarbi paskata į įmonių valdymą pritraukti kompetentingus asmenis, turinčius reikiamų žinių eiti tokias pareigas[12]. C. Directors’ Liability and Enforcement Mechanisms – General Structure and Key Issues – from the German Perspective, p. 4. Iš FLEISHNER, H., et al German and Asian Perspectives on Company Law, 2016, planuojama išleisti [interaktyvus. J. Corporate Directors [and Officers] Making Business Judgments in Tennessee: The Business Judgment Rule. A. The Business Judgement Rule, Fiduciary Duties of Corporate Directors, t
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
