business judgment

• Business judgment rule

• Cost-benefit analysis of the business judgment rule: a critique in light of the financial meltdown.

In 2008, the United States--indeed the whole world--suffered a devastating financial meltdown. We know now that a significant cause of the meltdown wa...

• Albany Law Review
• Vol. 74 Nbr. 1, September 2010

• Living On the Edge: Fiduciary Duties, Business Judgment and Expensive Uncertainty in the Zone of Insolvency

Although the extent of Delaware directors' fiduciary duties to creditors during financial distress remains unclear, consensus has begun to develop around the idea that concerns about expansive liability are misplaced because business judgment is typically shielded. This Article contends that to the contrary, the problem remains highly salient because creditors' ability to litigate triggers a staggering set of doctrinal problems and practical costs. It proposes that Delaware courts be explicit that creditors lack standing in the zone of insolvency and articulate a narrow standing doctrine for creditors of insolvent firms alleging fiduciary breach on the basis of zone decisions.

• Stanford Journal of Law, Business & Finance
• Vol. 13 Nbr. 1, October 2007

• Recent US case discusses the Business Judgment Rule.

The business judgment rule The business judgment rule is a defence to breach of the statutory duty of care and diligence in section 180 of the Corpo...

• Mondaq Business Briefing
• Nbr. 2011, January 2011

• Business Judgment Rule Does Not Trump Unanimous Shareholders' Agreement.

Directors of a corporation cannot invoke the business judgment rule to justify decisions that violate a unanimous shareholders' agreement, the Ontario...

• Mondaq Business Briefing
• Nbr. 2010, January 2010

• Landowner Balks at Trail-to-Trader Joe's Gate ; a 'Business Judgment' Is Cited for Leaving Intact a Fence Between Bayside Walkers and Local Stores.

A chain-link fence that cuts off the new Trader Joe's from the Bayside Trail isn't likely to get a gate or other opening, judging by the response of the property owner who erected the fence. Peter Quesada, whose Fore River Co. owns the land on Marginal Way, said his company "made a business judgment" to put up the fence between the trail and the store. He declined to say what that business judgment was based on.

• Portland Press Herald
• November 08, 2010

• Business Judgment Rule: Feeling New Pressures?

Tackling a written question, Justice Carolyn Berger startles the audience with a blunt observation: Courts might open board decisions on executive pay and bonuses to legal scrutiny if they "subvert basic values and standards," when such matters normally have been protected from challenge under the business judgment rule.

• Compliance Week
• Vol. 6 Nbr. 61, February 2009

• Dow Chemical Decision - Delaware Chancery Court Reaffirms Business Judgment Rule is Alive and Well in Delaware.

A few recent Delaware cases had cast doubt on the protections afforded to directors of a Delaware corporation. More recent decisions, however, seem to...

• Mondaq Business Briefing
• Nbr. 2010, January 2010

• Court Holds That The Business Judgment Rule Does Not Apply To Protect The Decisions Of Corporate Officers In California

In a recent decision of importance to all corporate officers doing business in California, a federal district court applying California law has reject...

• Mondaq Business Briefing
• United States Law Articles in English

• Business Judgment Rule

A legal principle that makes officers, directors, managers, and other agents of a corporation immune from liability to the corpor...

• West's Encyclopedia of American Law
• Be

• Dow Chemical Decision - Delaware Chancery Court Reaffirms Business Judgment Rule is Alive and Well in Delaware

A few recent Delaware cases had cast doubt on the protections afforded to directors of a Delaware corporation. More recent decisions, however, seem to...

• Mondaq Business Briefing
• United States Law Articles in English