Fiduciary Duty: Business Judgment Rule
Fiduciary Duty: Business Judgment Rule Business Judgment Rule: The legal protection for director’s actions under the corporate structure. Under the business judgment rule, absent evidence of bad faith, fraud, illegality or gross overreaching, courts are not at liberty to interfere with the exercise of business judgment by corporate directors. Purpose: To protect against honest mistakes. The purpose of this rule is to protect directors who have been diligent and careful in performing …