The company vice president recommends that the directors of the corporation purchase a parcel of prime real estate on which to build a new office building for the company. Four of the six directors are members of a real estate partnership that owns that property. Without any disclosures, and on the same day as the vice president’s recommendation, the directors vote unanimously to approve the purchase. One month later, it is revealed that the price paid by the corporation was 20 percent above fair market value for the property.

Will these directors be protected by the business judgment rule?