A key consideration in deciding whether the shareholders in the Countrywide Corporation case would be successful in their lawsuit against members of the board of directors was application of:
A)Proportionate liability
B)Scienter
C)Business judgment rule
D)Privity rule

Question

Quizplus · Accepted Answer

The business judgment rule is a legal principle that grants deference to the decisions of a corporation's board of directors as long as the board acts in good faith, with due care and loyalty, and with a reasonable belief that its decisions are in the best interest of the corporation. This principle provides a strong defense for the board against claims of negligence or breach of fiduciary duty by shareholders. Therefore, the application of the business judgment rule is a key consideration in assessing the likelihood of success for the shareholders' lawsuit against the board of directors in the Countrywide Corporation case.

A Key Consideration in Deciding Whether the Shareholders in the Countrywide