A corporate director is not liable to the corporation or its shareholders for an honest mistake of judgment.

Question

Quizplus · Accepted Answer

This principle is known as the "business judgment rule," which protects directors from liability for decisions that result in loss or harm to the corporation if the decisions were made in good faith, with the care that an ordinarily prudent person would take, and with the belief that the decisions were in the best interests of the corporation.

A Corporate Director Is Not Liable to the Corporation or Its