The following excerpt is from Auerbach v. Bennett, 419 N.Y.S.2d 920, 47 N.Y.2d 619 (N.Y. 1979):
The business judgment rule does not foreclose inquiry by the courts into the disinterested independence of those members of the board chosen by it to make the corporate decision on its behalf here the members of the special litigation committee. Indeed the rule shields the deliberations and conclusions of the chosen representatives of the board only if they possess a disinterested independence and do not stand in a dual relation which prevents an unprejudicial exercise of judgment. (Cf. Koral v. Savory, Inc., 276 N.Y. 215, 11 N.E.2d 883.)
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