A presumption that, in making a business decision, directors of a corporation act on an informed basis, in good faith, and in the honest belief that their actions are in the best interests of the corporation.
A legal doctrine that protects directors and officers of a corporation from personal liability for losses arising from a prudent, good faith decision.
This rule immunizes management from liability in corporate transaction undertaken within both power of corporation and authority of management where there is reasonable basis to indicate that a transaction was made with due care and in good faith.