Courts have held that even if a director of a company can prove that he or she acted in good faith,the director cannot be excused from liability.

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Courts have recognized the concept of "business judgment rule," which provides a level of protection to directors who act in good faith and with reasonable care in making business decisions. Thus, if a director can prove that he or she acted in good faith and made an informed decision, the court may excuse the director from liability.

Courts Have Held That Even If a Director of a Company