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The business judgment rule is a case-law-derived doctrine in corporations law that courts defer to the business judgment of corporate executives. It is rooted in the principle that the "directors of a corporation ... are clothed with [the] presumption, which the law accords to them, of being [motivated] in their conduct by a bona fides regard for the interests of the corporation whose affairs the stockholders have committed to their charge." The rule exists in some form in most common law countries, including the United States, Canada, England and Wales, and Australia.
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