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Recent judicial decisions, and an unusual SEC enforcement proceeding, indicate that the traditional safeguards of the business judgment rule, and charter provisions which eliminate personal liability for duty of care violations, will not protect directors who intentionally disregard their duties. Although directors acting in good faith should not be unnerved, directors are well advised to become proactive in matters of corporate governance.
October 24, 2003 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
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