Sentences with phrase «business judgment rule»

Under the «business judgment rule,» courts (in Canada, the US, the UK, and elsewhere) are generally reluctant to tell a corporation's board of directors that they've failed in their duty of care vis - a-vis shareholders, because the court lacks the competency to do so.

«Shareholders can vote, but boards can just ignore them under the «business judgment rule» backed by state laws and courts.

[In it, Strine] decided a novel question of law, ruling that, «when a controlling stockholder merger has, from the time of the controller's first overture, been subject to (i) negotiation and approval by a special committee of independent directors fully empowered to say no, and (ii) approval by an uncoerced, fully informed vote of a majority of the minority investors, the business judgment rule standard of review applies.»

If a down round financing is led by a new outside investor, does the board need to be concerned by the business judgment rule?

The district court held that the claims were time barred and, alternatively, that the fund board's refusal to pursue plaintiffs» litigation demand was protected by the business judgment rule.

His other case experience includes the trial and appeal of dissolution and shareholder derivative actions which established the scope of the business judgment rule in the state of Connecticut and a murder case that was a case study on the issue of time of death in Dr. Henry Lee's book Cracking Cases: The Science of Solving Crime.

The «business judgment rule» accords deference to a business decision, so long as it lies within a range of reasonable alternatives: see Maple Leaf Foods Inc. v. Schneider Corp. (1998), 1998 CanLII 5121 (ON CA), 42 O.R. (3d) 177 (C.A.); Kerr v. Danier Leather Inc., [2007] 3 S.C.R. 331, 2007 SCC 44 (CanLII).

Courts should give appropriate deference to the business judgment of directors who take into account these ancillary interests, as reflected by the business judgment rule.

They involve detailed rules but also general principles like the business judgment rule.

Canadian courts apply the «business judgment rule» as a general approach.

The «business judgment rule» applies to decisions of condominium Boards of Directors.

When an independent committee is constituted to investigate a demand and make an informed recommendation, such decisions are generally protected by the business judgment rule, as was the case in Wyndham.

«Many members of less sophisticated boards and companies think the business judgment rule is pretty much an absolute defence so long as they act reasonably and prudently.

Business judgment rule: a presumption that directors making a business decision, not involving self - interest, act on an informed basis, in good faith and in the honest belief that their actions are in the corporation's best interest.

An earlier decision by the court had applied the «business judgment rule» to another residential co-op corporation's decision making process.

The «business judgment rule» is a standard commonly used by courts to evaluate the decisions made by a corporation's board of directors, which is a deferential standard under which courts defer to the good faith decisions made by a corporate board of directors related to the company's operations.

The trial court had declined to apply this standard, instead applying the statutory requirements which a landlord must comply with when it attempts to eject a tenant from its premises, finding that the business judgment rule did not apply when it was in conflict with other state statutes.

The court determined that it was appropriate to apply the business judgment rule to the Co-op's decision to eject the Shareholder, finding no conflict between the ejectment statutes and the business judgment rule.

Thus, the court upheld the Co-op's vote to terminate the Shareholder's lease, using the business judgment rule.

In these instances, Florida courts impose the «business judgment rule» which states that as long as the judge finds that the Condo Board has acted in a «reasonable» manner in passing the special assessment, then that decision will be respected even if the unit owners are unhappy with the Board's action.