Question: please, reply this post with your thoughts (minimun 100 words) Toes The U.S. Business Judgment Rule assumes that management acts in the best interest of

please, reply this post with your thoughts (minimun 100 words)
please, reply this post with your thoughts
Toes The U.S. Business Judgment Rule assumes that management acts in the best interest of the corporation and its stakeholders unless otherwise pre They are presumed to uphold their duty of care and always operate in good faith. It is sometimes referred to as the Business Judgment Presumpt as it gives directors and other individuals who hold positions of power, the benefit of the doubt. Although it may be presumed that a person of po acts in the best interest of the corporation, this rule can still be defeated. For example, if a plaintiff sues and can prove that a director or officer ac in bad faith, then this presumption will not be upheld in court. Management must always be prepared to prove that their dealings were in good fa and for the benefit of the corporation as a whole. I agree with all the parts of the U.S. rule as I believe it has been put into place to protect the uncertainty and risk associated with a business. The reality is that conducting a business of any kind can be very challenging and risky. Many times, it can be hard for directors to know the exact outco based on their actions. Therefore, this rule is designed to not only look at the outcome but also the process of how everything happened. On the surface, this rule can be seen as being very hard-fast in the sense that certain conditions must be met but I do not believe it is. These conditions are very clear and if the court clearly sees that the directors actions were in compliance with this rule, there will be no need to second-guess their actions. However, if other evidence is brought forward, these directors must be ready to prove otherwise. Carefully looking at the process and not only the outcome, separates this rule from the rest I have researched South Africa's Business Judgment Rule, as it has been one of my favorite travel destinations thus far. In South Africa, this rule stat that "a director is considered to have satisfied the obligations of acting in the best interests of the company, and with the degree of care, skill and diligence that may reasonably be expected of a person carrying out the same functions in relation to the company as those carried out by that director and having the general knowledge, skill, and experience of that director Overall, this presumption is very similar to that of the United State In both countries, the rule is clear and straightforward by carefully examining the actions of the directors in order to determine what their motives were. However, sources have stated that the Business Judgment Rule is considered to be broader in South Afqica than in other countries as it does not only apply to the directors' judgments but also to any decision that directors may take as it relates to their responsibilities

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