Protections for those serving on corporate boards

BY R. TODD THOMPSON

Some businesspeople cringe at the notion of serving as an officer or director of a company or organization for fear of exposure to legal liability based on accusations of mismanagement or incompetence. Of course, litigation is always a risk in the business world.  However, the law affords certain protections for officers and directors acting in good faith. Moreover, indemnification and insurance are available to cushion the blow in the event of a suit alleging misfeasance by a director.

 

The Business Judgment Rule

Directors of a corporation are generally held to . . .

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