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Executive Compensation Regulation Markets Reform Wiki. If this is for a business it is best to consult with a local attorney. Fiduciary Responsibilities of a Nonprofit Board of Directors. Also found in Financial Acronyms Wikipedia Business Judgment Rule A legal principle that makes officers directors managers and other agents of a.

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While the business judgment rule is historically linked particularly to the duty of care standard of conduct shareholders who sue the directors often charge both the duty of care and duty of loyalty violations.

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Definition The duty of loyalty stands for the principle that directors and officers of a corporation in making all decisions in their capacities as corporate fiduciaries must act without personal economic conflict.

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