Under the business judgment rule: Answer Directors and officers have an obligati

Question

Under the business judgment rule:
Answer

Directors and officers have an obligation to exercise sound business judgment, and any failure to do so is per se negligence which results in liability to the corporation.

Directors and officers have an obligation to exercise sound business judgment, and any failure to do so results in a rebuttable presumption of negligence.

Directors and officers are never liable in suits filed against them by shareholders.

Directors and officers are not liable for honest mistakes of judgment.

Explanation / Answer

Under the business judgment rule: Directors and officers have an obligation to exercise sound business judgment, and any failure to do so is per se negligence which results in liability to the corporation.

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