Homeowners Associations – Business Judgment Rule
Palm Springs Villa II Homeowners Association, Inc. v. Erna Parth Court of Appeal, Fourth Appellate District (June 21, 2016). The “business judgment rule” refers to a judicial policy of deference to the business judgment of corporate directors in the exercise of their broad discretion to make corporate decisions. Under this rule, a director is not liable for a mistake in business judgment which is made in good faith and in what he or she believes to be the best interests of the corporation, where no conflict of interest exists. Read the article…………..