The business judgment rule is a United States case law-derived concept in corporations law whereby the "directors of a corporation . . . are clothed with presumption, which the law accords to them, of being in their conduct by a bona fide regard for the interests of the corporation whose affairs the stockholders have committed to their charge".
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 . . . the exchange was so one-sided that no business person of ordinary, sound judgment could conclude that the corporation has received adequate consideration".
Read more about Business Judgment Rule: Basis, Duty of Care and Duty of Loyalty, Standard of Review, Rationale
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“It shall be said his judgment ruled our hands.
Our youths and wildness shall no whit appear,
But all be buried in his gravity.”
—William Shakespeare (1564–1616)
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—Ralph Waldo Emerson (1803–1882)
“Nothing can or shall content my soul
Till I am evened with him, wife for wife,
Or failing so, yet that I put the Moor
At least into a jealousy so strong
That judgment cannot cure.”
—William Shakespeare (1564–1616)
“I am a Christian according to my conscience in belief, ... in purpose and wish;Mnot of course by the orthodox standard. But I am content, and have a feeling of trust and safety.
The Machiavellian mind and the merchant mind are at one in their simple faith in the power of segmental division to rule all—in the dichotomy of power and morals and of money and morals.”
—Marshall McLuhan (1911–1980)