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The rationale behind the rule is to shield those individuals that owe fiduciary duties to a company (directors, officers, executives) from fear of a lawsuit .
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And all of their directors were being sued, texas courts used the business judgment rule to protect those directors:
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This principle is known as the business judgment rule and it is a defense to accusations of breach of the duty of care.
Texas courts to this day will. Nder the business judgment rule a corporate director who acts. Judgment rule to protect those directors: Texas law applies the business judgment rule, which protects corporate officers from liability for informed decisions made in good faith. This principle is known as the business judgment rule and it is a defense to accusations of breach of the duty of care. The texas business corporation act provides that [tlhe business and. Defendants argue that the texas business judgment rule limits fdic to actions for fraud or ultra vires conduct by defendants. As the court has explained at . The business judgment rule in texas generally protects corporate officers and directors, who owe fiduciary duties to the corporation, . When a board of directors approves a transaction that does not involve a sale of control, or decides to remain independent by . And all of their directors were being sued, texas courts used the business judgment rule to protect those directors: The rationale behind the rule is to shield those individuals that owe fiduciary duties to a company (directors, officers, executives) from fear of a lawsuit . The fiduciary duties of the board of directors of a private texas corporation.
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