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Instead of paying dividends to its shareholders, the board of directors of TechCorp decided to give bonuses to its top engineers. Shareholders did not like
Instead of paying dividends to its shareholders, the board of directors of TechCorp decided to give bonuses to its top engineers. Shareholders did not like this decision and sued the board for breach of fiduciary duty. The business judgment rule applies to this situation. Which of the following facts, if true, would show that the business judgment rule does not protect the board? The board did not use reasonable care when it made its decision The board's decision was made in bad faith The board did not reasonably believe it was acting in TechCorp's best interest. Any of the above 3 points A "tort" is an action, other than , that causes loss and for which the law assigns civil liability. a crime a negligent act an intentional act a breach of contract 7 3 points Match the legal concept with the stakeholder group it is meant to protect
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