n Without Prejudice - A new defence for directors : company law
|Article Title||A new defence for directors : company law|
|© Publisher:||JetBlue Publishers (Pty) Ltd|
|Publication Date||May 2011|
|Pages||12 - 13|
|Keyword(s)||Institute of Directors|
The business judgement rule was developed in the United States of America 'because of a desire to protect honest directors and officers from the risks inherent in hindsight reviews of their unsuccessful decisions, and because of the desire to refrain from stifling innovation and venturesome business activity.' The English common law shows that the courts were unwilling to intervene in board decisions as far back as 1742. Then, in 1829, the business judgement rule was formally recognised by the Louisiana Supreme Court as a corporate law defence.
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