A major limitation that managers have due to the business judgement rule is "Self-Dealing". In the textbook, Essentials of Business Law, it defines self-dealing as, "a manager making a decision that benefits himself or another company with which he has a relationship," (Beatty, 840). This is a violation of their duty of loyalty to the shareholders. This is a major limitation because it is in human nature to pick the choice that most benefits us, so a manager has to ignore this to maintain the business judgement rule. This is why it is important that the managers' best interests align with their shareholders, to avoid self-dealing from occurring.

Reply

i just need whether you agree or not