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Business Judgment Rule

The business judgment rule protects a director from personal liability if he or she has performed diligently and carefully in legitimate furtherance of corporate objectives and purposes and has not acted fraudulently, illegally, or otherwise in...

Stock and Commodity Exchange Volatility Controls

Stock exchanges such as the New York and American Stock Exchanges and trading facilities such as Nasdaq are considered self-regulatory organizations under federal securities laws. To reduce volatility, securities and commodities markets have...

Disclosure of a Corporate Opportunity

Generally, a corporate director breaches the duty of loyalty if she seizes a business opportunity for herself that the corporation was financially capable of undertaking or in which the corporation had a reasonable...

Business Review Letters -- Antitrust Clearance from the Department of Justice

Before engaging in a business practice, individuals and companies may seek the view of the U.S. Department of Justice on the legality of the business practice under federal antitrust law. The procedure, known as a Business Review, allows persons...

WASTE OF CORPORATE ASSETS

WASTE OF CORPORATE ASSETS

Under Delaware corporation law and the corporation statutes in most states, directors owe the corporation the duties of care, loyalty, and good faith (and/or obedience). A...