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Corporate law, study case

Corporate law, study case

You are the Chairman of the Board of a well-known, publicly traded corporation. You are personally responsible for convincing the Board to fund a new product design that ultimately failed when it was placed on the market, causing extreme losses for the corporation. The shareholders now want to hold you personally responsible for all the losses to the corporation and have filed a derivative lawsuit in the name of the corporation in which you are the defendant. Please describe how you would defend yourself using the Business Judgment Rule. Create and describe any facts you think will support your position under this Rule. Limit your facts to only those that will support your position under this Rule and no others.

Tips for answers:

1. Issues what is the business judgment rule (definition ext..)

2. What do you argue to prevent the defendant. (Make sure to gather all information, admit if the decision is 100% is loyal to corporation, and talk about Good faith

In other word, describe first, what is the business judgement rule? And then you’re going to describe how you’re just make up the facts by the way, how your, just logic make up how you know, or what proof you would have that this person was acting 100% loyal to the company and the decision that they generally made a competent decision somehow because maybe they did a market survey, they did lots of, you know, get all the information that could possibly find to decide on which product they were going to put out. And number three, that they were dealing in good faith. Don’t forget about good faith, make sure you put in good faith and why. 

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