In order to obtain the protection of the business judgment rule, directors need not be free from conflicts of interest.

Question

Quizplus · Accepted Answer

The business judgment rule protects directors in their decision-making as long as they act in good faith, with the care an ordinarily prudent person in a like position would exercise, and without a conflict of interest. Directors with conflicts of interest may not be protected under this rule.

In Order to Obtain the Protection of the Business Judgment