Question: When does the business judgment rule apply? The business judgment rule will apply as long as the directors or officers took reasonable steps to become

When does the business judgment rule apply?

The business judgment rule will apply as long as the directors or officers took reasonable steps to become informed about the matter, had a rational basis for their decisions, and did not have a conflict between their personal interests and the interest of the corporation.

The business judgment rule will apply as long as the directors or officers took reasonable steps to become informed about the matter and had a rational basis for their decisions only.

The business judgment rule will apply as long as the directors or officers took reasonable steps to become informed about the matter only.

The business judgment rule will apply as long as the directors or officers took reasonable steps to become informed about the matter, had a rational basis for their decisions, did not have a conflict between their personal interests and the interest of the corporation, and consulted with general counsel before making their decision.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Water (50F) flows with a speed of 5 ft /s through a horizontal run of PVC pipe. The length of the pipe is 100 ft , and the pipe is schedule 40 with a nominal diameter of 2.5 inches. Calculate (a) The...

Arthur Modell, president, CEO, and a director of the Cleveland Browns Football Co., Inc., (Browns) owned 53 percent of that corporation. Other members of the board at that time included Pat Modell,...

I need a well written student case brief including the following: Facts: statement of the facts of the case General Analysis: the legal principles used to decide the case, including the Issue and...

BUSL250 Directors Statutory Duties Corporate Governance Financial and reporting obligations Audit 1 Section 191 s191 Requires that a director of a company who has a material personal interest in a...

What is the business model of Craigslist? In this circumstance, what is the appropriate legal rule? Who are Craiglist's stakeholders and what are their role and responsibilities? For the exclusive...

What are the facts in this case? The facts are the story of what happened (who, what, where, when) before the lawsuit. What is the problem that the parties can't resolve on their own? Use the opinion...

Accounting Theory The questions/requirements to answer for each paper are: 1. What is the research question of the article? 2. Explain the main arguments and conclusion of the article. 3. Give 1...

If the weights of children are distributed according to the N(40,125), then probability that the total weight of any 5 children will be less than 210 kg= * (3 Points) O 0.6179 O 0.6915 O 0.6554 0.7881

Discuss the arc welding quality and type of defects involved? What are the inspection and testing methods available to check the quality of weld joint?

liquidity ratios measure protection for long - term fund suppliers. this question is true or false

Read the articles on journaling and review the template provided. Identify what approach, to journaling, in the articles you found useful and why. Post to the discussion forum that you have reviewed...