Business Judgment Rule Maine

Are clothed with the presumption which the law accords to them of being motivated in their conduct by a bona fide regard for.

Business judgment rule maine. The business judgment rule a court created rule that pre dates cooperative corporations themselves is a common law doctrine by which courts exercise restraint and defer to good faith decisions made by boards of directors in business settings. It is contended that this rule which affords protection to directors who have made honest decisions will provide the necessary balance between greater accountability and economic efficiency. The rule is a presumption that in.

In suits alleging a corporation s director violated his duty of care to the company courts will evaluate the case based on. 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. 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 in good faith without any direct conflict of interest and in the honest and reasonable belief that it was in the corporation s best interest.

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 case law derived doctrine in corporations law that courts defer to the business judgment of corporate executives. 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 insulates directors from liability for exercising that discretion by restricting second guessing from shareholders absent a showing of fraud illegality or self dealing. Business judgment rule is a legal principle which grants directors and officers immunity from shareholder lawsuits if they acted in good faith. For the purpose of this paper the authors adopted a doctrinal legal approach in.

In other words a business decision that doesn t turn out well shouldn t be questioned as long as the directors acted in good faith.