The business judgement rule is a law that presumes that in the event of making important business decisions that impact the overall welfare of a business entity, the board of directors of a particular corporation are justified to make the decision in the interest of the company. It also assumes that the directors did so in good faith and with an honest intention towards protecting the company’s welfare. The inability of the directors of the Chicago Cubs baseball club and its management to install a lighting system in Wrigley could fall under this assumption. Being a minority shareholder in the company, William Shlensky could be viewed by the courts as an opportunist willing to earn more through having night games at the stadium at the expense of the security or else financial risks that the club could incur by having night games. The directors of the baseball club could however be protected by the business judgement rule. That is if if they have reasons as to why they came up with the decision not to have lights installed. If they made the decision in good faith and with the honest belief that it would be more relevant business-wise, then their decision could be upheld. The business judgement rule is considered as the most important rule that covers corporate entities. This is because it provides a protective legal layer for the board of directors of any company and any decision that they make. Mr. Shlensky will have an uphill task of providing evidence to the courts as to why he believes that the board of the club acted or were negligent.
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