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Co Judgment Sample Form

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[Music] so one of the core principles of a corporate law is something called the business judgment rule the business judgment rule is a principle that establishes the review the kind of review that courts will do of corporate actions companies make all kinds of decisions the those decisions May disappoint various stakeholders of the corporation shareholders might not like a decision that the board of directors makes and they may Sue in court and say the board of directors they're the people that we have delegated to make decisions on our behalf and running the corporation they made a bad decision and they want to bring that action in court and the business judgment rule says courts are not going to second guess business decisions decisions of the board to do a particular particular thing those things will be judged in the market those things can be judged by the people who would buy or Not by the products and if shareholders don't like the decision they can sell their s

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