Your Authoritative Source on Singapore Law

A Business Judgment Rule for Incorporating Jurisdictions in Asia?

Douglas M Branson

(2011) 23 SAcLJ 687

Australia, Malaysia, South Africa, several US states, and other jurisdictions have adopted statutory codifications of the common law business judgment rule. The rule protects directors from liability for errors in judgment or lapses of ordinary care. As an incorporation jurisdiction, whether Singapore should adopt a codification is the issue running throughout this article. To answer that question, parties must develop a feel for the rule: what it is, the policies behind it, how it might operate in practice, and the cons of statutory adoption.