To obtain the protection of the business judgment rule, a director must meet certain requirements in arriving at his or her decisions. He or she must:

Question

Quizplus · Accepted Answer

In order to obtain the protection of the business judgment rule, the directors must meet three requirements in arriving at their decision: First, they must make an informed decision. Second, the decision makers must be free from conflicts of interest. Third, the board of directors must have a rational basis for believing that the decision is in the best interests of the corporation.

To Obtain the Protection of the Business Judgment Rule, a Director