Business Judgment Rule Jurisprudence

The business judgment rule rule the most prominent and important standard of judicial review under corporate law protects a decision of a corporate board of directors board from a fairness review entire fairness under delaware law unless a well pleaded complaint provides sufficient evidence that the board has breached its fiduciary duties or that the decision making process is tainted such as with a lack of independence or interestedness.

Business judgment rule jurisprudence. The business judgment rule is corporate law s central doctrine pervasively affecting the roles of directors officers and controlling shareholders. Historically the business judgment rule as interpreted by state and federal courts presumed that directors of corporations making decisions on behalf of shareholders were correct if they acted 1 in good faith 2 on an informed basis 3 in a disinterested manner 4 with due care and 5 without discretion or waste. 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.

To overcome this presumption challengers were forced to. The business judgment rule 10. The rationale behind the rule is that the person in an intellectual capacity would not want to be caught with law as a barrier to their innovation and responsibility high demand of responsibility and obliging to the duty of care and diligence would result in less people 5willing to take up director duties the business judgment rule clearly.

The business judgement rule is a presumption that in making a business decision the directors of a corporation acted on an informed basis in good faith and in the honest belief that the action taken. Increasingly moreover versions of the business judgment rule are found in the law governing the other types of business organizations ranging from such common forms as the general partnership. 1984 delaware courts produced one of the most frequently cited interpretation of the business judgement rule in us jurisprudence.

The business judgment rule is a concept applied by canadian courts in reviewing the decisions of a board of directors of a corporation. Prinsip business judgment rule adalah suatu prinsip hukum yang berasal dari system common law dan merupakan derivative dari hukum korporasi di amerika serikat. The courts must give appropriate deference to the business judgment of the directors who are in the best position to take into account the diverse interests of the corporation and its stakeholders including what weight to give the stakeholder interests as.

The business judgment rule has been described in delaware case law as follows. 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. Konsep ini mencegah pengadilan pengadilan di amerika serikat untuk mempertanyakan pengambilan keputusan usaha oleh direksi yang diambil dengan itikad baik.