What does business judgment rule mean?

business judgment rule meaning in Insurance Dictionary

a typical legislation obligation doctrine often used to absolve the administrators and officials of a corporation from responsibility, provided it could be shown that a loss lead from an apparently prudent, good-faith business choice that merely turned out to be wrong, in the place of a grossly negligent or deceptive act.

business judgment rule meaning in Law Dictionary

traditional for imposing responsibility on administrators of company; they must give time and considered to decisions.

business judgment rule meaning in Business Dictionary

appropriate presumption that the handling of a firm is acting within the firm's most readily useful interest and, for that reason, its decisions are safeguarded from judicial analysis. It safeguards the administration from decisions that result in reduction or turn out to be wrong. If administration is available, however, to stay violation of their fiduciary responsibilities, the rule cannot apply and its own activities come in scrutiny regarding the courts.