Question
Shlensky was a minority shareholder of Chicago National League Ball Club Inc., which owned and operated the Chicago Cubs baseball team.The defendants were directors of
Shlensky was a minority shareholder of Chicago National League Ball Club Inc., which owned and operated the Chicago Cubs baseball team.The defendants were directors of the Club.Shlensky alleged that since 1935, when night baseball was introduced, every major league team except the Cubs had scheduled most of its home games at night.This had allegedly been done for the purpose of maximizing attendance, thereby maximizing revenue and income.
The Cubs had sustained losses from the team's direct baseball operations.Shlensky attributed these losses to inadequate attendance at the Cub's home games, which were played at Wrigley Field only during the day.He felt that if the directors continued to refuse to install lights at Wrigley Field and schedule night baseball games, the Cubs would continue to sustain losses.
Shlensky further alleged that Philip Wrigley, the president of the corporation and chairman of the board, refused to install lights not, as Wrigley claimed, for the welfare of the corporation, but because of his personal opinion that "baseball is a daytime sport."Shelnsky charged the other directors with acquiescing in Wrigley's policy for reasons contrary to the business interests of the corporation and wasting corporate assets.
1.Did the Directors exercise reasonable care in the management of the corporation's affairs?
2.Are the Directors protected by the business judgment rule?Why or why not
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