# kaal:claim:kaal-2013-acomparativeperspectiveo-006

**Claim.** Losses alone are not sufficient to hold directors personally liable for taking risks that lead to those losses, because risk is inherent in maximizing shareholder value.

**Type.** condition  **Support.** evidenced

**Holds when.**

- Delaware law
- risk taking that produces corporate losses

**Source quote.**

> Losses alone were not sufficient to hold directors personally liable for taking risks that lead to losses because risk is inherent in maximizing shareholder value.

**From.** Kaal, *A Comparative Perspective on the Limitations of the Duty of Oversight – A Comment on Lisa Fairfax* (2013), Introduction, discussing In re Citigroup, page 5

**Cite as.** Kaal, A Comparative Perspective on the Limitations of the Duty of Oversight – A Comment on Lisa Fairfax (2013)

**Verify.** sha256 of source PDF `ac5c955fe01209c54c78c4575c0b8bf570e5f1259c3f855510697cf51a32e59a` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202013%20-%20A%20Comparative%20Perspective%20on%20the%20Limitations%20of%20the%20Duty%20of%20Oversight%20%E2%80%93%20A%20Comment%20on%20Lisa%20Fairfax.pdf

**Topics.** corporate-governance, law-and-legal-systems, risk-and-incentives

**Keywords.** director-liability, business-risk, shareholder-value, delaware-law

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