Practice question
Which fact most directly defeats the claim that the business judgment rule is an absolute shield?
- The board discussed a corporate policy.
- A corporation operates for profit.
- A project has risks.
- Section 30 recognizes director liability on specified grounds, including bad faith or gross negligence in directing corporate affairs.
- Shareholders hold different numbers of shares.
Legal references
- Montelibano v. Bacolod-Murcia Milling Co., G.R. No. L-15092, 18 May 1962, https://www.lawphil.net/judjuris/juri1962/may1962/gr_l-15092_1962.html
- Teng v. Teng, G.R. No. 277015, 17 February 2025, main decision, https://lawphil.net/judjuris/juri2025/feb2025/gr_277015_2025.html
- Revised Corporation Code, RA 11232, sections 22, 30 and 39, https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/86463
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