Decisional Integrity and the Business Judgment Rule

Authors

Alfred Dennis Mathewson, University of New Mexico - School of LawFollow

Document Type

Article

Publication Date

1-1-1990

Abstract

Shareholders associate together to own a business enterprise in corporate form. The nature of this association requires that an individual shareholder accept less than exclusive control over the enterprise and live with some form of collective decision making. In fact, corporate law divests shareholders of direct decision-making power and, instead, vests it in a board of directors elected by shareholders. Despite this divestiture, shareholders voluntarily step into these associations in the hope of obtaining a share in the enterprise's profits.

Publication Title

Pepperdine Law Review

Volume

17

First Page

879

Recommended Citation

Alfred D. Mathewson, Decisional Integrity and the Business Judgment Rule, 17 Pepperdine Law Review 879 (1990).
Available at: https://digitalrepository.unm.edu/law_facultyscholarship/387