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About this Event Should the courts review directors’ business judgment? This question has been canvassed extensively in academic literature. Arguments against such review include the dangers of judging directors’ decisions with the benefit of hindsight; the fact that judges lack business expertise and should not, therefore, second guess business decisions; that review of business judgment with liability would deter individuals from becoming directors; or that it would lead to more risk adverse decisions. Arguments for review include improving standards; deterring unfit directors; and, significantly, accountability of directors for harms they have caused through careless decisions. This paper reassesses the debate, drawing on the findings of a two year Arts and Humanities Research Council funded study Business Judgment and the Courts. This project examined what was meant by business judgment; identified how the courts apply this concept; and assessed to what extent d

South australiaUnited kingdomHong kongNew south walesJoan loughreyAndrew keayJennifer hillArnold bloch leiblerBilliton ltdMonash law schoolEuropean corporate governance instituteSomerville collegeUniversity of sydneyUniversity of cambridgeCambridge university pressManagement school