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by testvox
2903 days ago
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The courts don't review normal business judgements. Even when there is a fiduciary duty. If that wasn't true then no one would want to risk being a officer because they would be constantly getting sued by upset shareholders. > The courts will defer to erroneous business judgments, provided that the officers or directors did not show gross negligence in their review and decision-making process. Without this rule in place, many individuals would be unwilling to serve as officers and directors and business people might be reluctant to take commercial risks that could benefit a corporation in the long run. https://www.nolo.com/legal-encyclopedia/fiduciary-responsibi... |
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