Shareholder Derivative Action

The video explains the accountability of corporate officers and directors to shareholders, focusing on fiduciary duties and derivative liability. It discusses the business judgment rule, which protects officers and directors if they use reasonable judgment in decision-making. Shareholders can sue if officers or directors act recklessly or intentionally harm the corporation.

What is the business judgment rule and how does it protect directors and officers?

Under what circumstances can shareholders bring an action against a director or officer?