# kaal:claim:1558614-022

**Claim.** The German and U.S. business judgment rules diverge most sharply at the German rule's fifth element, the requirement of no hazard decision or excessive risk taking, which German law presumes but allows to be rebutted.

**Type.** definitional  **Support.** argued

**Holds when.**

- German rule is code based in the Aktiengesetz; the U.S. rule is case law of the state of incorporation

**Source quote.**

> As pointed out below, it is in this last element where the business judgment rules in the United States and in Germany diverge the most. German law presumes no hazard and excessive risk, but this presumption can be rebutted.

**From.** Painter and Kaal, *Initial Reflections on an Evolving Standard Constraints on Risk Taking by Directors and Officers in* (2010), IV.A. The Business Judgment Rule, page 29

**Cite as.** Painter and Kaal, Initial Reflections on an Evolving Standard Constraints on Risk Taking by Directors and Officers in (2010). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1558614

**Verify.** sha256 of source PDF `e898211630f4116879329d6de8397523dca5b066864147421aa5cbc7429dc83b` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Painter%20and%20Kaal%20-%202010%20-%20Initial%20Reflections%20on%20an%20Evolving%20Standard%20Constraints%20on%20Risk%20Taking%20by%20Directors%20and%20Officers%20in.pdf

**Topics.** risk-and-incentives

**Keywords.** business-judgment-rule, excessive-risk, comparative-corporate-law, aktiengesetz

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/kaal-2013-acomparativeperspectiveo-012
- extended_by: https://wulfkaal.github.io/claims/kaal-2013-acomparativeperspectiveo-013

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.