A professional shall manage the affairs entrusted to him with the care of a good manager in accordance with tenor of the mandate. If professionals have acted in violation of any Acts or has neglected to perform their duties, they shall be jointly and ...
A professional shall manage the affairs entrusted to him with the care of a good manager in accordance with tenor of the mandate. If professionals have acted in violation of any Acts or has neglected to perform their duties, they shall be jointly and severally liable for damages to the client. Tough enforcement is essential for a strong market and enterprise since it ensures that wrongdoers are punished and relinquish any benefits obtained by violations. A tough enforcement system is essential to preserve the integrity of our market. However, over-enforcement, enforcement in excess of that needed to deter, can entail serious unnecessary costs. Therefore, it is important that administrative authorities will be find out the optimum level of regulations and balance of sanctions on professionals.
In this article, with these issues in mind, I would like to explore problems of duty of care and responsibility of professionals. First, I would review the restriction of professionals’s responsibility, specially a realistic possibility to introduce the liability capping and the proportionate liability, and then the guideline of professional’s duty of care by way of example, the business judgment rule and the internal control system.