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Business Judgment Rule: Lessons for Co-op and Condo Boards (NY)

/ Owner - January 30, 2024

The business judgment rule often serves as a perceived safety net for boards, shielding them from legal scrutiny. However, this rule is not an impenetrable shield and boards should be aware of the nuances. Simply put, the business judgment rule states that, with four exceptions, a court cannot overrule a co-op, condo or HOA board-issued rule or policy no matter how strongly the judge may disagree with it. 

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