For the business judgment rule to apply:

Question

Quizplus · Accepted Answer

The business judgment rule provides protection to directors from liability for decisions made in good faith and in the best interests of the corporation. While extraordinary care is a good practice, it is not a requirement for the business judgment rule to apply. Additionally, while conflicts of interest can create potential issues for directors, they do not necessarily determine whether the business judgment rule applies. Ultimately, the key factor is whether the director acted in the best interests of the corporation.

For the Business Judgment Rule to Apply