kaal:claim:1558614-026

Under the German hazard decision doctrine, no manager acts reasonably, whether a bank officer or a board member, if the risks taken on the corporation's behalf would destroy the corporation should they be realized.

no manager, regardless of whether the manager is a bank officer or board member, acts reasonably if he or she takes on risks on behalf of the corporation that, if realized, will result in the demise of the cor- 130 poration

Painter and Kaal, Initial Reflections on an Evolving Standard Constraints on Risk Taking by Directors and Officers in (2010), IV.B.5. No Excessive Risk Taking, No Hazard Decision, p. 33
https://ssrn.com/abstract=1558614 · source PDF

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

• German business judgment rule as elaborated in the ARAG decision of the Bundesgerichtshof
• risk must be such that its realization ends the corporation

conditionsupport: evidencedrisk-and-incentivessystemic-risk

• restated_by kaal:claim:kaal-2013-acomparativeperspectiveo-013 German commentators, whose expertise German courts rely on heavily, concluded after the financial crisis that ...

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