Business Judgment Rule Georgia

Georgia s lower courts regularly invoke the business judgment rule as a recognition that.

Business judgment rule georgia. In the first interpretation of the georgia supreme court s july 2014 ruling confirming that the business judgment rule insulates directors and officers from claims of negligence concerning the. The business judgment rule a creation of case law presumes that in making business decisions or taking corporate action directors and officers acted in a good faith informed manner and that. In a controversial ruling the supreme court interpreted the business judgment rule in georgia to protect officers and directors of georgia corporations from claims of negligence relating to decisions made by them but that the officers and directors could be held liable for negligent breaches of their fiduciary duty of care if the officers and directors utilized an inadequate process in making the decision.

1 judges and juries should not be called upon to review business decisions made in the regular course of. House bill 192 was initiated as a response to the supreme court s 2014 decision in fdic v. Prior to that decision georgia s application of the business judgment rule mirrored that of other business friendly states namely delaware.

Business judgment rule exists in georgia it may not be available to bank directors and officers. In a controversial ruling the supreme court interpreted the business judgment rule in georgia to protect officers and directors of georgia corporations from claims of negligence relating to decisions made by them but that the officers and directors could be held liable for negligent breaches of their fiduciary duty of care if the officers and directors utilized an inadequate process in making the decision. The supreme court could reason that bank directors and officers should be held to a different standard than directors and officers of other business corporations because according to the district court unlike a.

2014 case weakened georgia s business judgment rule. In sum the business judgment rule in georgia is not a complete common law shelter from director and officer liability but it is a significant bulwark for directors and officers who exercise.