caa a22 4500 445829834 CHVBK 20180317145310.0 cr unu---uuuuu 170323e20110601xx s 000 0 eng 10.1007/s10657-010-9153-3 doi (NATIONALLICENCE)springer-10.1007/s10657-010-9153-3 Rose Caspar Department of International Economics and Management, Copenhagen Business School, Porcelænshaven 24 A, 2000, Frederiksberg, Denmark aut Director's liability and investor protection: a law and finance perspective [Elektronische Daten] [Caspar Rose] This article conducts an analysis of director's liability in listed firms using modern finance theory. The paper describes how the use of special general clauses in Danish law regulates director's liability. It is shown how risk and return combinations may assist in determining whether management has violated the business judgment rule. The analysis shows that this legal doctrine is optimal from an economic perspective. The article introduces the concept of "temporal relatively of the shareholder equality principle” which can be used to determine whether the interests of minority shareholders have been set aside. It is shown that the principle of shareholder equality must be subjected to both an ex ante, as well as an ex post assessment. Moreover, courts should be reluctant to interfere in situations where there has been an unequal distribution of gain (or loss) ex post. The theoretical arguments are illustrated by analyzing a leading Danish court case that involved the squeeze out of minority shareholders in the Danish telecom company. The paper also analyzes the incentive effects of derivate suits and suits commenced by individual shareholders. It is shown that the former creates a free rider problem whereas in the latter situation, shareholders are not fully able to internalize their externalities. Springer Science+Business Media, LLC, 2010 Minority protection nationallicence Director's liability nationallicence Business judgement rule nationallicence Shareholder equality and squeeze out nationallicence European Journal of Law and Economics Springer US; http://www.springer-ny.com 31/3(2011-06-01), 287-305 0929-1261 31:3<287 2011 31 10657 https://doi.org/10.1007/s10657-010-9153-3 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s10657-010-9153-3 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Rose Caspar Department of International Economics and Management, Copenhagen Business School, Porcelænshaven 24 A, 2000, Frederiksberg, Denmark aut NATIONALLICENCE 773 0- European Journal of Law and Economics Springer US; http://www.springer-ny.com 31/3(2011-06-01), 287-305 0929-1261 31:3<287 2011 31 10657 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer