Business Judgment Rule For Nonprofits

Are clothed with presumption which the law accords to them of being in their conduct by a bona fide regard for the interests of the corporation whose affairs the stockholders have committed to their charge.

Business judgment rule for nonprofits. Black s law dictionary menyebutkan business judgment rule is rule immunizes management from liability in corporate transaction undertaken within power of corporation and authority of management where there is reasonable basis to indicate that transaction was made with due care and goof faith. The business judgment rule is invoked in lawsuits when a director of a corporation takes an action that affects the corporation and a plaintiff sues alleging that the director violated the duty of care to the corporation. Doktrin business judgment rule yang mengatur batasan batasan tertentu soal kapan direksi dan komisaris tidak dapat dimintai pertanggungjawaban atas risiko keputusan atau tindakan pengawasan yang telah mereka ambil telah diserap dalam pasal 97 ayat 5 dan pasal 114 ayat 5 undang undang no.

Business judgment rule is the legal doctrine that a corporation s officers and directors cannot be liable for damages to stockholders for a business decision that proves unprofitable or harmful to the corporation so long as the decision was within the officers or directors discretionary power and was made on an informed basis. The business judgment rule has been described in delaware case law as follows. However this note will use the more common term the business judgment rule since the nonprofit version of the rule is derived from the for profit version with no significant difference.

Ada yang menarik dalam diskusi daring yang diselenggarakan hukumonline pada kamis 24 9 lalu dalam diskusi yang bertema implementasi doktrin business judgment rule dalam aktivitas bisnis perusahaan diungkap problem hukum implementasi doktrin bjr dalam pemeriksaan tindak pidana korupsi di pengadilan pasalnya bjr sendiri pada dasarnya merupakan doktrin impunitas bagi pengurus perusahaan. The business judgment rule is a legal doctrine that protects directors of for profit corporations from having to second guess their actions as long as they re acting in a reasonable informed manner that they believe to be in the best interests of their corporation. It is rooted in the principle that the directors of a corporation.

Business judgment rule generally the business judgment rule is a judicial doctrine arising from courts respect for corporate self governance as well as their dislike for second guessing the business decisions of corporate directors and officers. The rule exists in some form in most common law countries including the u. The business judgment rule for directors of not for profit corporations.

Many courts have applied this rule to nonprofit contexts as well. Nonprofit corporation act third edition committee on nonprofit organizations american bar association 2009 american bar association mnca although the official comment to sections 1 40 6 11 6 13 6 22 and 6 42 of the mnca suggests that the terms. In suits alleging a corporation s director violated his duty of care to the company courts will evaluate the case based on.

33 pojk 04 2014 tentang direksi dan dewan. The business judgment rule is sometimes referred to as the bestjudgment rule in the nonprofit context. The business judgment rule is a case law derived doctrine in corporations law that courts defer to the business judgment of corporate executives.