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Law-and-Economics of Business Judgment Rule in India
-
Rahul Singh
and
Pratyay Amrit
Published/Copyright:
January 9, 2024
Abstract
The article argues that the contours of the ‘business judgment rule’ (hereinafter, ‘the rule’ or ‘the doctrine’) have not been properly delineated and add avoidable transaction costs in terms of business decision-making. On the premise of ‘influence’ existing between Board Directors and countervailing requirements of legal compliance, it becomes imperative to study both components. In the absence of any clear legalese on the latter component incentivizes Directors in two ways – by inhibiting judgment or by incentivizing abuse for a perceived higher probability of economic gain.
Received: 2023-03-21
Accepted: 2023-10-09
Published Online: 2024-01-09
© 2023 Walter de Gruyter GmbH, Berlin/Boston
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Keywords for this article
law-and-economics;
India;
Indian corporate law;
business judgment rule;
the meld model
Articles in the same Issue
- Frontmatter
- Research Articles
- The Role of Judges in Selecting Efficient Norms in a Common Law System: A Law and Economics Perspective
- Law-and-Economics of Business Judgment Rule in India
- Does Antitakeover Provision Harm Shareholders? Indexing for Antitakeover Provisions in China
- Seventy Years of Marriage and Family Law in China: Achievements, Challenges and Prospects
- Estimating the International Cocaine Market: A Novel Combination of Excess Compensation and Stochastic Frontier Analysis
- Is the Korea Fair Trade Commission Abusing the Provision for Abuse of Superior Trading Position?: A Critical Analysis of the Act on Fair Intermediary Trade of Online Platforms
