Explain the business judgment rule
“Directors, Officers, Controlling Shareholders-Legal Environment-Negligence”
Explain the “Business Judgment Rule”, and discuss what facts must be established in order to take advantage of the rule. Identify any factors that would cause a judge to not respect a director’s business judgment. Articulate the significance of a director making an “Informed Decision”. Compare and contrast the following duties: “Duty of Care”; “Duty of Good Faith”; “Duty of Loyalty”; and “Duty of Candor”. Determine how a breach of such duties may expose a director, officer, or controlling shareholder to a claim(s) or cause of action arising in “Negligence”.