Does the Business Judgment Rule preclude inquiry by the courts into the disinterested independence of the members of the special litigation committee?

"New York", United States of America

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.)

Other Questions


Is applying the business judgment rule to allow disinterested, independent directors to terminate derivative litigation? (MultiRegion, United States of America)
When a final judgment from one district court is registered with another district court pursuant to Section 1963, is it treated like a judgment from the other district court? (MultiRegion, United States of America)
When a litigant claims that a lower court has taken action beyond its jurisdiction, does the court have power to require the lower court to set matters right? (MultiRegion, United States of America)
How have courts dealt with a judgment against the superior court judge for rendering the judgment against him? (MultiRegion, United States of America)
Does the bankruptcy court have jurisdiction to review the final state court judgment upon which the civil restitution judgment is based? (federal, United States of America)
What is the test for federal courts to extend full faith and credit to a state court judgment? (MultiRegion, United States of America)
What is the test for affirming a judgment by a federal district court on any ground that is different than the one relied on by the district court? (MultiRegion, United States of America)
Does a court have jurisdiction to hear an appeal from the reentry of a judgment of conviction from a reentry judgment of a prior conviction? (MultiRegion, United States of America)
What is the effect of a judgment in a federal court on a claim brought by a plaintiff in a state court? (MultiRegion, United States of America)
Can a federal court order an injunction preventing future litigation in a state court? (MultiRegion, United States of America)
X



Alexi white


"The most advanced legal research software ever built."

Trusted by top litigators from across North America.