# kaal:claim:kaal-2013-acomparativeperspectiveo-012

**Claim.** 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.

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

**Holds when.**

- German stock corporation law
- Section 93 AktG business judgment rule

**Source quote.**

> 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, page 6

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

**Keywords.** german-law, business-judgment-rule, excessive-risk, arag-garmenbeck, director-liability

**Related claims.**

- restates: https://wulfkaal.github.io/claims/1558614-022
- supports: https://wulfkaal.github.io/claims/1558614-006
- contests: https://wulfkaal.github.io/claims/1558614-005
- extends: https://wulfkaal.github.io/claims/1558614-024

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