3 ms·
If that shareholder elects instead to sue, they will almost certainly lose, absent specific evidence of bad faith or of breaches of the duties of care or loyalt
by rosser 8y ago
If that shareholder elects instead to sue, they will almost certainly lose, absent specific evidence of bad faith or of breaches of the duties of care or loyalty, for example.
The "business judgement rule" [0] compels courts to defer to the judgement of the executives of a business, on the basis that they have a bona fide interest in that business and its activities, and understand them better than either the court or J. Random Shareholder ever could.
"The business judgment rule is very difficult to overcome and courts will not interfere with directors unless it is clear that they are guilty of fraud or misappropriation of the corporate funds, etc." [1]
[0] https://en.wikipedia.org/wiki/Business_judgment_rule https://en.wikipedia.org/wiki/Business_judgment_rule
[1] ibid.