The Delaware courts interpret the Business Judgment Rule[1] very liberally. That's because there is risk in business, and corporations take risks and lose all t

The Delaware courts interpret the Business Judgment Rule[1] very liberally. That's because there is risk in business, and corporations take risks and lose all the time, and that's just capitalism. The court is not there to determine what risks are good business and which are bad business. The big thing you aren't allowed to do that happens with some regularity is breach the duty of loyalty by engaging in self-dealing transactions, trade using inside information, or taking opportunities that are presented to the corporation for your other businesses. [1] https://en.wikipedia.org/wiki/Business_judgment_rule https://en.wikipedia.org/wiki/Business_judgment_rule