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TITLE [Damages]Supreme Court Decision 2006Da68636 Decided September 11, 2008 [full Text]
Summary
[1] In a case where a chief executive officer neglects the unlawful conduct of other directors when there is reason to suspect it, whether such chief executive officer is liable for damages incurred by a third party arising from such act (affirmative), and whether a joint chief executive officer and directors in charge of duties in a publicly held corporation are exempted from their duty to monitor the performance of other directors, solely on the ground that they each exclusively deal with their own specialized areas according to a corporate internal division of duties (negative in principle) [2] The degree of an auditor's duty of care in a publicly held corporation, where the acts of arbitrariness by some officers and employees are neglected or the auditor's access to the important financial information is systematically and continuously blocked
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