The officers and the directors are fiduciaries of the corporation,but the business judgment rule will not preclude liability on officers and directors for honest mistakes of judgment.

Question

Quizplus · Accepted Answer

The business judgment rule does protect officers and directors from liability for honest mistakes of judgment, assuming they acted in good faith, with the care that an ordinarily prudent person in a like position would have exercised under similar circumstances, and in a manner they reasonably believed to be in the best interests of the corporation.

The Officers and the Directors Are Fiduciaries of the Corporation,but