Corporation Law

Business Judgment Rule

What is business judgment rule?

 

General Rule: Courts will not interfere in the decisions made by the BOD as regards the internal affairs of the corporation

 

Exception: Unless such contracts are so unconscionable and oppressive as to amount to a wanton destruction of rights of the minority. (Ingersoll v. Malabon Sugar Co., G.R. No. L-­‐ 16977, Apr. 21, 1922)


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