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Court Holds That the Business Judgment Rule Does Not Apply to Protect the Decisions of Corporate Officers in California

On January 3, 2012 by Schnader

In a recent decision of importance to all corporate officers doing business in California, a federal district court applying California law has rejected the argument that corporate officers are shielded from personal liability by the Business Judgment Rule (“BJR”). The effects are far reaching to any corporate officer whose corporation is doing business within the State of California.