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SAGE Social Science Thesaurus

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Concept information

Preferred term

business judgment rule  

Definition

  • The business judgment rule serves to shield an officer or director from civil liability when sued for a breach of a fiduciary duty, with the highest fiduciary duty owed to shareholders. Under corporation law, the business judgment rule is the classic defense used by directors and officers of corporations when they are sued, usually by shareholders. [Source: Encyclopedia of Business Ethics and Society; Business Judgment Rule]

Broader concept

Belongs to group

URI

http://data.loterre.fr/ark:/67375/N9J-FC7PD9H5-9

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