Fiduciary duties of care and loyalty, the business judgment rule

  1. Do the legal rules (i.e., fiduciary duties of care and loyalty, the business judgment rule, safe harbors, etc.) and the SEC self-regulatory oversight philosophy, both of which define corporate self-regulation in a free enterprise market economy, provide enough protection to stakeholders to prevent corporate misconduct? In this regard, should there be more regulation or less regulation of business? EXPLAIN your answer. (Drafting hint: use the examples in course materials such as Enron, Refco, Wells Fargo, etc.)