The business judgment rule in Canadian corporate law protects directors from liability when

The business judgment rule in Canadian corporate law protects directors from liability when

The business judgment rule in Canadian corporate law protects directors from liability when:

A. They make informed, good-faith decisions in the company’s best interests

B. The decision results in corporate losses

C. They follow majority shareholder demands

D. They delegate decisions to external advisors

Answer: A

Explanation: The business judgment rule shields directors if they act on informed basis, in good faith, and with honest belief the decision serves corporate interests.