Legal Dictionary of Pakistan

business-judgment rule

Corporations. The presumption that in making business decision> not involving direct self-interest or self-dealin_. corporate directors act on an informed basis. n good faith, and in the honest belief that the actions are in the corporation's best interest. 4 The rule shields directors and officers from liability for unprofitable or harmful corpora(e transactions if the transactions were made in good faith, with due care, and within the directors' or officers' authority.