The research on the problems of CEOs’ legal status and legal liability
Abstract
Purpose
The importance of CEOs (chief executive officers) is not to be underestimated and this paper seeks to identify the problems in law of definition and thus liability of CEOs.
Design/methodology/approach
This paper draws upon the legislative and judicial experiences of China and compares them to those of the USA.
Findings
Since an owner and a manager become “the principal‐agent relationship” in the enterprise, the manager's “moral venture question” is inevitable. With the development of corporate governance structure, CEOs appear, thus people begin to take care of CEOs’ legal status and legal liability. A CEO has not only a manager's authority of office, but also some part of authorities of board of directors and president, so a CEO's legal position is higher than that of a manager. Because the questions caused by CEOs are increasing, it is necessary for us to draw lessons from American Corporate Law Reform, to revise our Corporate Law, to make definite CEOs’ legal status and to strengthen CEOs’ legal liability.
Originality/value
The findings will hopefully influence reform and development in this area in China.
Keywords
Citation
Zhi, L. (2009), "The research on the problems of CEOs’ legal status and legal liability", International Journal of Law and Management, Vol. 51 No. 4, pp. 245-259. https://doi.org/10.1108/17542430910974077
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited