Practice question
In evaluating a lawful honest board policy choice, does a shareholder’s preference for another commercial strategy alone require judicial substitution?
- Always
- Only if the shareholder is vocal
- Only if a newspaper agrees
- Only if the company is old
- No; preference alone does not establish an exception to business-judgment deference
Legal references
- Montelibano v. Bacolod-Murcia Milling Co., G.R. No. L-15092, May 18, 1962, main decision: https://www.lawphil.net/judjuris/juri1962/may1962/gr_l-15092_1962.html
- Teng v. Teng, G.R. No. 277015, February 17, 2025, main decision: https://lawphil.net/judjuris/juri2025/feb2025/gr_277015_2025.html
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