LAW 533 Lecture Notes - Lecture 2: Business Judgment Rule, Revlon, Best Interests
13 Feb 2018
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Friedman: duties of corporate directors are agents of the owners and their responsibility is to pursue the owner"s interest, which is profit. Because this section says best interest of the corporation. More open ended word, not just stakeholders. Business judgment rule: gives latitude for directors on what exactly is in the best interest. Judges will not tell directors what to do, you know what to do best, except if you don"t behave in a reasonable way (e. g. not doing your due diligence) Brings up long term interests of the corporation (not in the cbca) Scc said not just the shareholders but in the circumstances its fully acceptable to look at stakeholders. They opened the legal door and said it is okay to do that. Responsible corporate citizen: now inserted into the obligations of the directors by the scc. When conflicting interests arise choose the option that makes the. Going green and the bce decision corporation a good responsible corporate citizen.
