- business judgment rule
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business judgment rule n: a rule of law that provides corporate immunity to directors of corporations protecting them from liability for the consequences of informed decisions made in good faith
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.
- business judgment rule
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n.A rule that exempts corporate executives from liability if there is reason to believe that they made the decision in question in good faith, with due care, and thought they were acting in the best interest of the corporation; their judgment may not be second-guessed.
The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008.
- business judgment rule
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n. 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.
Webster's New World Law Dictionary. Susan Ellis Wild. 2000.
- business judgment rule
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A legal principle that makes officers, directors, managers, and other agents of a corporation immune from liability to the corporation for loss incurred in corporate transactions that are within their authority and power to make when sufficient evidence demonstrates that the transactions were made in good faith.
Dictionary from West's Encyclopedia of American Law. 2005.
- business judgment rule
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A legal principle that makes officers, directors, managers, and other agents of a corporation immune from liability to the corporation for loss incurred in corporate transactions that are within their authority and power to make when sufficient evidence demonstrates that the transactions were made in good faith.
Short Dictionary of (mostly American) Legal Terms and Abbreviations.
