business judgment rule

Corporations. The presumption that in making business decisions not involving direct self-interest or self-dealing, corporate directors act on an informed basis, in good faith, and in the honest belief that their actions are in the corporation’s best interest.

• The rule shields directors and officers from liability for unprofitable or harmful corporate transactions if the transactions were made in good faith, with due care, and within the directors’ or officers’ authority. [Cases: Corporations 310(1). C.J.S. Corporations §§ 475, 477–484, 487–489.]

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词条贡献者

法律翻译Terence，毕业于欧洲顶尖的高级翻译学院，专注翻译各类与房地产与土地使用诉讼有关的法律文件。