Pogisa is a director at Trendz Corp.After studying and consulting with experts,Pogisa votes to have Trendz sell a tract of land for $500 per acre.Within a year,the land is worth $2,000 per acre,and Trendz shareholders want to sue Pogisa for her vote to sell the land.Under the ________,Pogisa may be entitled to legal protection.

Question

Quizplus · Accepted Answer

According to the Business Judgment Rule, directors are presumed to have acted in good faith and in the best interest of the company. As long as Pogisa made an informed decision after consulting with experts, she may be protected from legal action by the shareholders. The increase in value of the land does not necessarily mean that Pogisa's decision was not in the best interest of the company at the time it was made.

Pogisa Is a Director at Trendz Corp