Asked by Javier Sanmartín Miramontes on Jul 26, 2024
Verified
The business judgment rule may apply to determine whether directors acted reasonably in resisting a takeover attempt.
Business Judgment Rule
A principle that protects corporate directors and officers from liability for decisions made in good faith and believed to be in the best interest of the company.
Takeover Attempt
An effort by one company or entity to acquire control over another, often involving the purchase of a significant share of the target company's stock.
- Comprehend strategies to shield from acquisition attempts, such as self-tender offers.
Verified Answer
CP
Chancler PrattJul 28, 2024
Final Answer :
True
Explanation :
The business judgment rule can apply to assess if directors acted in a reasonable manner when resisting a takeover attempt, as it is designed to protect directors' decisions made in good faith and in what they believe to be the best interests of the corporation.
Learning Objectives
- Comprehend strategies to shield from acquisition attempts, such as self-tender offers.