Business integrity v. business efficiency: the corporate opportunity doctrine in China

Purpose – The purpose of this paper is to assess the application of the nascent corporate opportunity doctrine in China by comparison with its well-established English counterpart; in particular, it evaluates whether the fine balance between business integrity and business efficiency has been struck.

Findings – It is argued that the scope of application of the corporate opportunity doctrine in China should be extended, and the rules on the burden of proof should be amended. Moreover, a stricter approach should be adopted by the Chinese judiciary for the purpose of protecting the company’s interests and enhancing business integrity.

Research limitations/implications – This paper mainly focuses on the corporate opportunity doctrine. It does not discuss other duties of directors in detail.

Practical implications – It is useful for directors in balancing business integrity and business efficiency.

Originality/value – It is an original piece of work which assesses the corporate opportunity doctrine by making comparison with English law.