Delaware Courts Reaffirm Duty of Oversight in Corporate Governance

The Delaware Chancery Court's 1996 decision in In re: Caremark International Inc. established a precedent for holding directors and officers liable for failure to exercise oversight duties.

This standard, known as Caremark claims, has been applied in subsequent cases, including the recent ruling in Del. Boeing Ruling Shows How Compliance Defeats Caremark.

The Caremark decision recognized that boards of directors have a fiduciary duty to ensure that companies are operating in compliance with relevant laws and regulations.