Business judgment rule

{
  "id": "MLC-T-LAW-000808",
  "term": "Business judgment rule",
  "field": "Law",
  "definition": "A legal principle that protects corporate directors and officers from liability for decisions made in good faith and with reasonable care. This rule presumes that directors act in the best interests of the corporation and will not be held personally liable for honest errors in judgment. It encourages directors to take calculated risks without fear of constant litigation.",
  "url": "https://mlchart.com/terminology/law/business-judgment-rule/"
}