Although the outside director system and the audit committee were introduced in order to enhance the transparency and efficiency of corporate management required by the international capital market after the IMF situation, their effectiveness was debi...
Although the outside director system and the audit committee were introduced in order to enhance the transparency and efficiency of corporate management required by the international capital market after the IMF situation, their effectiveness was debilitated by the influence of controlling stockholders or ruling owners. However, the activation of he outside director system need the high-quality human resources specializing in business execution only. The reason is that, as the outside director system is activated, the board of directors is composed of outside directors, so that the direction/supervision over business execution can be efficient, whereas the capability for business execution can be inefficient. Thus, the executive officer system need specialize in business execution only here. Therefore, this study will examine the various legal problems in case of introducing the executive officer system.
(ⅰ) This study will identify the concept of executive officers, in that their legal naure toward their company should be the mixed contract between the employment contract and the mandate contract in accordance with directors.
(ⅱ) In case of representative action as the means of ensuring the responsibility of executive officers, this study will investigate the qualification for defendant in executive officers through the substantial interpretation on the concept of directors.
(ⅲ) This study will analyze the possibility of applying the principles of managerial judgement as the exemption from responsibility for executive officers.
(ⅳ) This study will probe the stock option as the compensatory system for executive officers, and the restriction against the abuse of chief executive officer in the incentives for stock option.