Business Judgement Rule Supplement Fiduciary Duti
Understanding the Business Judgement Rule and Fiduciary Duties is crucial for corporate leaders. The Business Judgement Rule protects directors from liability for honest mistakes in judgement, while Fiduciary Duties obligate them to act in the best interests of the company and its shareholders. This balance ensures that directors can make informed decisions without undue fear of litigation, as long as they act in good faith, with due care, and in a manner reasonably believed to be in the best interests of the corporation.