The ________ protects the decisions of a board of directors that acts on an informed basis, in good faith, and in the honest belief that the action taken was in the best interests of the corporation and its shareholders.

Question

Quizplus · Accepted Answer

The business judgment rule protects the decisions of a board of directors as long as they acted on an informed basis, in good faith, and in the honest belief that the action taken was in the best interests of the corporation and its shareholders. The Williams Act and antifraud provision of the SEC are not relevant to this concept, and the pro rata rule refers to a specific method of allocating shares in an offering.

The ________ Protects the Decisions of a Board of Directors