Artificial Intelligence Intervention in Corporate Governance: Directors’ Fiduciary Duties
DOI:
https://doi.org/10.61173/jse43g13Keywords:
Artificial Intelligence, Corporate Governance, Directors’ Duty of Fiduciary, Directors’ Duty of Loyalty, Directors’ Duty of CareAbstract
The increasing use of commercial artificial intelligence technology in corporate governance poses potential legal risks. This paper analyses the intervention of artificial intelligence in corporate governance from the perspective of directors’ fiduciary duty, discusses its impact on directors’ duty of loyalty and care, and points out that the use of artificial intelligence itself is in line with the requirements of the current legal system on directors’ fiduciary duty, but may increase the directors’ care duty, especially in terms of overseeing the process of the use of artificial intelligence. Based on this, the paper makes recommendations for the improvement of Company Law and internal corporate governance.
References
[1] Urban, T. (2015). The AI revolution: The road to [14] Li, Y. (2006). An Analysis of the Business Judgment superintelligence. Wait But Why, 22. Rule and Director Duties in United States Corporate Law. Law
[2] Xu, Y.Z., Li, D. Q. & Gong, S. Y. (2020). A Preliminary Science (05), 143-149. Study on the Integration of Artificial Intelligence and [15] Guo, L. H. vs. China Securities Regulatory Commission. Corporate Management Innovation. Journal of Commercial (2019). (Case No. (2019) Jing Xing Zhong No. 687). The Economics (10), 113-116. High People’s Court of Beijing Municipality. Retrieved
[3] Standing Committee of the National People’s Congress. March 8, 2024, from https://wenshu.court.gov.cn/website/ (2018). Article 147 of the Company Law of the People’s Republic wenshu/181107ANFZ0BXSK4/index.html?docId=8gSbm+bn4 of China. In Company Law of the People’s Republic of China. 6OZTVxCdveDP8CByAUgqqoAxK+nxwGah1E7iqNNXrHSx5/dg Retrieved March 8, 2024, from https://flk.npc.gov.cn/detail2.ht BYosE2gAM7783DJfK6P8QMkngvRwnAx2zd1vNFoJ2xQjdB/ ml?ZmY4MDgwODE2ZjEzNWY0NjAxNmYxY2M5OGFkODExMzQ WaKBeE4iiuUz3AncA1VMl96O
[4] Standing Committee of the National People’s Congress. [16] Xu, P., & Xu, X. Y. (2020). Change Logic and Analysis (2023). Article 180 of the Company Law of the People’s Republic Framework of Enterprise Management in the Era of Artificial of China. In Company Law of the People’s Republic of China. Intelligence. Journal of Management World (01), 122-129+238. Retrieved March 8, 2024, from https://flk.npc.gov.cn/detail2.ht [17] Cheng, W. (2022). Reinterpretation of Directors’ Duties ml?ZmY4MDgxODE4YzkxMDhlYjAxOGNiNjkyMmY3NTBjMDc and Liabilities with Artificial Intelligence Intervening in the
[5] Shandong Haizhijie Textile Co., Ltd. vs. Ahmed Gaber Sobhy Board of Directors. Journal of Northeastern University (Social Ismail. (2020). (Case No. (2020) Zui Gao Fa Min Shen No. 640). Science) (02), 100-108. The Supreme People’s Court of the People’s Republic of China. [18] Veasey, E. N., & Holland, R. J. (2020). Caremark at the Retrieved March 8, 2024, from https://wenshu.court.gov.cn/ Quarter-Century Watershed: Modern-Day Compliance Realities website/wenshu/181107ANFZ0BXSK4/index.html?docId=0Trw Frame Corporate Directors’ Duty of Good Faith Oversight, nmdfj4tAjR46KwkLJhgAZ9NZ/IaYErXOMc91ISZOWhKrMchRXJ/ Providing New Dynamics for Respecting Chancellor Allen’s dgBYosE2gAM7783DJfK6P8QMkngvRwnAx2zd1vNFoJ2xQjdB/ 1996 Caremark Landmark. BUS. LAW.,76, 1-1. WaJTdEr2E6EKmrKXxUvOfHRN [19] In re Caremark Intern., Inc. Derivative Litig., 698 A.2d 959
[6] Dorchester Finance Co v Stebbing. (1989). [Case No. [1989] (Del. Ch. Sept. 25, 1996). BCLC 498]. Foster J. [20] Chen H. L. (2023). Institutional Construction of Corporate
[7] New York State. (2023). Business Corporation Law § 715(h) Directors’ Compliance Obligations. Law and Economy (06), 33- Officers. In Business Corporation (BSC) Chapter 4, Article 7. 47.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 by the authors.
This work is licensed under a Creative Commons Attribution 4.0 International License.
