Under the business judgement rule, a court will uphold the decisions of a director as long as they are made (1) in good faith(2) with the care that a reasonably prudent person would use, and (3) with the reasonable belief that the director is acting in the best interests of the corporation. Does the business judgment rule give directors too much latitude in decision making and fosters risk taking?

Under the business judgement rule, a court will uphold the decisions of a director as long as they are made (1) in good faith(2) with the care that a reasonably prudent person would use, and (3) with the reasonable belief that the director is acting in the best interests of the corporation. Does the business judgment rule give directors too much latitude in decision making and fosters risk taking?

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