Caremark and Compliance: A Twenty Year Lookback

17 Pages Posted: 12 Mar 2018 Last revised: 23 Sep 2018

Donald C. Langevoort

Georgetown University Law Center

Date Written: 2018

Abstract

The Delaware Chancery Court’s decision in In re Caremark was and is a landmark decision. This brief Commentary takes a look back at Caremark on three issues that pertain to its contemporary relevance inside the corporate boardroom: (1) framing the cost-benefit assessment on the question of how much to spend on compliance; (2) how and when to force certain compliance matters to real-time board-level attention; and (3) using selection, promotion, and compensation decisions to influence the culture and risk-taking “temperature” of the firm.

Keywords: compliance, corporate crime, boards of directors

Suggested Citation

Langevoort, Donald C., Caremark and Compliance: A Twenty Year Lookback (2018). Temple Law Review, Vol. 90, Pp. 727-742. Available at SSRN: https://ssrn.com/abstract=3135950

Donald C. Langevoort (Contact Author)

Georgetown University Law Center ( email )

600 New Jersey Avenue, NW
Washington, DC 20001
United States
202-662-9832 (Phone)
202-662-9412 (Fax)

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