Business integrity v. business efficiency: the corporate opportunity doctrine in China

Abstract

Purpose

The purpose of this paper is to assess the application of the nascent corporate opportunity doctrine in China by comparison with its well-established English counterpart; in particular, it evaluates whether the fine balance between business integrity and business efficiency has been struck.

Findings

It is argued that the scope of application of the corporate opportunity doctrine in China should be extended, and the rules on the burden of proof should be amended. Moreover, a stricter approach should be adopted by the Chinese judiciary for the purpose of protecting the company’s interests and enhancing business integrity.

Research limitations/implications

This paper mainly focuses on the corporate opportunity doctrine. It does not discuss other duties of directors in detail.

Practical implications

It is useful for directors in balancing business integrity and business efficiency.

Originality/value

It is an original piece of work which assesses the corporate opportunity doctrine by making comparison with English law.

Citation

Ma, F. (2015), "Business integrity v. business efficiency: the corporate opportunity doctrine in China", Journal of Financial Crime, Vol. 23 No. 1, pp. 201-215. https://doi.org/10.1108/JFC-05-2014-0025