The business judgment rule provides that if a disinterested director made an informed business decision in good faith, he/she would not be liable if the corporation suffers losses from the decision. In this CLE, learn what the business judgment rule is, why it is important, how it can protect directors, and how it impacts claims of disgruntled shareholders.
- What is the business judgment rule?
- When does it apply?
- When does it not apply?
- Why is it important to directors and disgruntled shareholders?