Legal Question in Business Law in Minnesota
If a gentleman is the CEO of a company and with approval of the board of directors acquires a new company to add to the original one and the new company later must be sold for a loss, and the stock price of that company drops, what theory can the CEO use as a defense in a lawsuit?
Asked on 4/19/12, 7:31 am
1 Answer from Attorneys
David Anderson
Anderson Business Law LLC
It is called the "business judgment rule."
I would be happy to discuss further but it is inappropriate to expound in this forum without acquiring more in depth information on the facts.
Please feel free to call or email.
Answered on 4/19/12, 12:56 pm
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