The Business Judgment Rule - Explained

The video discusses the duties of officers and directors to a corporation, focusing on the duty to act in good faith and the duty of care. It explains the business judgment rule, which protects officers and directors from liability if they act in good faith, even if their actions are negligent. However, if they breach their duty of loyalty, the business judgment rule does not apply, and they may be liable for harm to the corporation.

Under what circumstances can an officer or director be held liable for harm to the corporation?

What happens if an officer or director breaches their duty of loyalty?