The ________ protects the decisions of a board of directors that acts on an informed basis, in good faith, and in the honest belief that the action taken was in the best interests of the corporation and its shareholders.

Question

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The business judgment rule protects decisions made by a board of directors as long as they acted on an informed basis, in good faith, and with the honest belief that the action taken was in the best interests of the corporation and its shareholders. The Williams Act is a federal law regarding disclosure in tender offers, the antifraud provision of the Securities and Exchange Commission refers to regulations related to preventing fraudulent activity, and the pro rata rule is a principle for allocating proportional shares in a distribution or offering.

The ________ Protects the Decisions of a Board of Directors