Business judgment rule

The business judgment rule is a deferential legal standard of review that presumes corporate directors and officers, in making business decisions, act on an informed basis, in good faith and in honest belief that their actions are in the corporation’s best interests. The business judgment rule was originally developed by judges in case law, and certain jurisdictions have codified the rule in their corporate statutes. The rule presumes directors’ decisions are valid and generally shields them from court interference or liability unless there is evidence of fraud, bad faith, self-dealing or other misconduct.

Delaware Versus Nevada Versus Texas: A Comparison of Corporate Laws
FAQ: Delaware Public Benefit Corporations
A Delaware public benefit corporation (PBC) is a for-profit corporation intended to produce a public benefit and operate in a responsible and sustainable manner. A PBC must be managed in a way that balances the interests of the stockholders, the company’s key stakeholders, and a specific public benefit that the company commits to in its charter.
What is a Benefit Corporation?