Under German law, directors' business decisions lose the protection of the business judgment rule where the business risk taken was inappropriately excessive, a standard German courts announced in ARAG/Garmenbeck.
Source quote, verbatim
explained that if the "business risk was inappropriately excessive," directors' business decisions are not protected under the 23 German business judgment rule.
From
Kaal, A Comparative Perspective on the Limitations of the Duty of Oversight – A Comment on Lisa Fairfax (2013), A Comparative Perspective on the Duty to Monitor, p. 6 · source PDF
Cite as
Kaal, A Comparative Perspective on the Limitations of the Duty of Oversight – A Comment on Lisa Fairfax (2013)
restateskaal:claim:1558614-022 The German and U.S. business judgment rules diverge most sharply at the German rule's fifth element, the requi...
supportskaal:claim:1558614-006 Although the business judgment rule is articulated differently in the two countries and German law leaves some...
contestskaal:claim:1558614-005 Law generally declines to adopt a general principle barring managers from incurring risk above a defined stand...
extendskaal:claim:1558614-024 Under the German business judgment rule's benefit of the corporation element, management cannot be acting for ...
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