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Business Judgment Rule
A legal principle that protects the decisions of corporate directors and officers, made in good faith and with reasonable diligence, from being second-guessed by courts.
Fairness Rule
The rule that requires managers to be fair to the corporation when they personally benefit from their business decisions.
Corporate Opportunity Rule
A legal doctrine preventing directors and officers of a corporation from taking a business opportunity for themselves without offering it to the corporation first.
Derivative Suit
A lawsuit brought by a corporation's shareholder on behalf of the corporation against a third party, often the corporation's executives or directors.
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