n SA Mercantile Law Journal = SA Tydskrif vir Handelsreg - When companies are harmed by their own directors : the defects in the statutory derivative action and the cures (Part 2)

Volume 25, Issue 3
  • ISSN : 1015-0099
  • E-ISSN: 1996-2185



Until the Act is amended (or failing amendment), the courts will have to engage more intimately with the business judgment rule. As explained above (in part 1 of this article), the business judgment rule is incorporated, in modified form, in the derivative action through the third limb of the rebuttable presumption. Paragraphs IV and V of the present article focus on the application of the business judgment rule and the rebuttable presumption in the context of derivative actions.

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