Business Pitch Dictionary by pitch.dog
Boards, directors & committees · Specialist

Business judgement rule

Also called: business judgment rule

ELI5

A legal doctrine giving qualified deference to informed, good-faith board decisions in some jurisdictions.

Used in conversation

“Can we state who receives the right created by business judgement rule, and when it applies?”

Pitch context

You will see “Business judgement rule” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches boards, directors & committees.

Why it matters: In boards, directors & committees, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 3

Direct term-level sources and supporting source families.