A contractual approach to the regulation of corporate directors’ fiduciary duties

Author:

Urtiaga María GutiérrezORCID

Abstract

Traditional American corporation statutes state that the business and affairs of the corporation shall be managed by a board of directors who act as fiduciaries of the corporation. The purpose of this paper is to explain the economic logic underlying the regulation of corporate directors’ fiduciary duties, placing special emphasis on the consequences of the adoption of protective measures for the directors such as indemnification and liability insurance.

Publisher

Virtus Interpress

Subject

General Business, Management and Accounting

Reference27 articles.

1. American Law Institute, 1994, “Principles of corporate governance: Analysis and recommendations”, The American Law Institute.

2. Bhagat, S., Brickley, J. A. and Coles, J. L., 1987, “Managerial indemnification and liability insurance: the effect on shareholders wealth”, The journal of risk and insurance, vol. 54, n 4.

3. Bishop, J.W., 1981, “Law of Corporate Officers and Directors: Indemnification and Insurance”, CBC Clark Boardman Callaghan, New York.

4. Branson, D. M., 1993, “Corporate Governance”, The Michie Company, Charlottesville, Virginia.

5. Brook and Rao, 1994, “Shareholder wealth effects of directors' liability limitation provisions”, Journal of Financial and Quantitative Analysis, vol. 29, pp. 481-497.

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