Directors are personally liable for errors in business judgment.

Name: Directors are personally liable for errors in business judgment.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Directors are protected by the business judgment rule, which assumes that they acted in good faith and in the best interests of the company when making decisions. As long as directors exercise reasonable care and diligence, they are generally not personally liable for errors in business judgment.

Directors Are Personally Liable for Errors in Business Judgment