Business Judgment
/ˈbɪznɪs ˈdʒʌdʒmənt/
Definitions
- (n.) A principle protecting corporate directors’ decisions made in good faith, with due care, and without conflict of interest from judicial second-guessing.
The court upheld the director’s actions under the business judgment rule.
Forms
- business judgment
Related terms
See also
Commentary
The term is primarily used in corporate law to shield directors from liability, emphasizing procedural fairness over outcome.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.