Section 214
Business judgment rule
ActIn forceProvision 214 of 768
Section 214
(a)
makes the business judgment for a proper purpose and in good faith;
(b)
does not have a material personal interest in the subject matter of the business judgment;
(c)
is informed about the subject matter of the business judgment to the extent the director reasonably believes to be appropriate under the circumstances; and
(d)
reasonably believes that the business judgment is in the best interest of the company.
Companies 237
(2)
For the purposes of this section, “business judgment” means any decision on whether or not to take action in respect of a matter relevant to the business of the company.