Question
In civil litigation, a director or officer must show their decisions are based on acting in good faith, exercising the care an ordinarily prudent person
In civil litigation, a director or officer must show their decisions are based on acting in good faith, exercising the care an ordinarily prudent person would do, and doing what he or she believes is in the best interests of the corporation. When a plaintiff alleges a breach of this duty - the director or officer can be found negligent.
The defense to an allegation of negligence, pursuant to the Business Judgment Rule, calls for a "presumption" that the decisions made met these criteria. Should we keep this Rule or is it outdated today? What do you think?
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