Business judgment rule

{
  "id": "MLC-T-INS-000647",
  "term": "Business judgment rule",
  "field": "Insurance and risk management",
  "definition": "A legal principle that protects corporate directors and officers from liability for decisions made in good faith, with due care, and in the best interests of the corporation. This rule presumes that directors act on an informed basis and without conflicts of interest. It shields fiduciaries from hindsight review, provided their actions were rational at the time they were made.",
  "subject": "Management Liability",
  "url": "https://mlchart.com/terminology/insurance/business-judgment-rule/"
}