The Duty of Care and Business Judgment Rule in Austrian Company Law
The Duty of Care and Business Judgment Rule in Austrian Company Law
Author(s): Martin WinnerSubject(s): Law, Constitution, Jurisprudence
Published by: Univerzita Karlova v Praze, Nakladatelství Karolinum
Keywords: duty of care; business judgment rule; principal–agent conflict; directors’ liability
Summary/Abstract: The duty of care is a core instrument to incentivise managers to act diligently and in the best interest of the company. The following article highlights some key points under Austrian law and puts special emphasis on the business judgment rule, which aims to limit the liability risk of board members arising from the problem of judicial hindsight bias.
Journal: Acta Universitatis Carolinae Iuridica
- Issue Year: 68/2022
- Issue No: 3
- Page Range: 9-22
- Page Count: 14
- Language: English