What does business judgment rule mean?
Definitions for business judgment rule
busi·ness judg·men·t rule
This dictionary definitions page includes all the possible meanings, example usage and translations of the word business judgment rule.
Wikipedia
Business judgment rule
The business judgment rule is a case law-derived doctrine in corporations law that courts defer to the business judgment of corporate executives. It is rooted in the principle that the "directors of a corporation... are clothed with [the] presumption, which the law accords to them, of being [motivated] in their conduct by a bona fide regard for the interests of the corporation whose affairs the stockholders have committed to their charge". The rule exists in some form in most common law countries, including the United States, Canada, England and Wales, and Australia.To challenge the actions of a corporation's board of directors, a plaintiff assumes "the burden of providing evidence that directors, in reaching their challenged decision, breached any one of the triads of their fiduciary duty — good faith, loyalty, or due care". Failing to do so, a plaintiff "is not entitled to any remedy unless the transaction constitutes waste... [that is,] the exchange was so one-sided that no business person of ordinary, sound judgment could conclude that the corporation has received adequate consideration".
Numerology
Chaldean Numerology
The numerical value of business judgment rule in Chaldean Numerology is: 4
Pythagorean Numerology
The numerical value of business judgment rule in Pythagorean Numerology is: 6
Translations for business judgment rule
From our Multilingual Translation Dictionary
- regola del giudizio commercialeItalian
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"business judgment rule." Definitions.net. STANDS4 LLC, 2024. Web. 6 May 2024. <https://www.definitions.net/definition/business+judgment+rule>.
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