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Business Judgment Rule

Directors Must Investigate Shareholders' Concerns

Brad Reid | Posted 05.13.2013 | Business
Read More: Fiduciary-Duty, Derivative Suit, Business-Judgment-Rule, Good Faith, Board of Directors, Business News
Brad Reid

Directors have a fiduciary duty to shareholders to act with due care and in good faith. A fiduciary has a high standard of care that requires that informed decisions be made honesty and fairly.

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Shareholders Must Go to the Corporation Before Going to the Courthouse

Brad Reid | Posted 02.14.2012 | Business
Read More: Shareholder Rights, Delaware Law, Business Judgment Rule, Director Accountability, Derivative Suit, Corporations, Board of Directors, Business News
Brad Reid

While shareholders are the owners of a corporation, in everyday actions the board of directors and officers manage the business. If a shareholder disa...

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Non-profit Directors Face Personal Liability

Brad Reid | Posted 12.31.2011 | Business
Read More: Conflicts of Interest, Condominium, Business Judgment Rule, Personal Liability, Bankruptcy, Nonprofit Corporation, Director, Business News
Brad Reid

A recent decision by the U.S. Court of Appeals for the Third Circuit, In re Lemington Home for the Aged, is a reminder to nonprofit corporation direc...

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