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An Introduction to the Law of Corporations: Cases and Materials, Fall 2017

Howard P. Kamin et al., Plaintiffs, v. American Express Company et al., Defendants.

Headnote

The business judgment presumption creates a great deal of space for boards to make decisions related to the operation and strategic direction of the business. Provided boards are disinterested and act in good faith in an informed manner, courts will give those board decisions great lattitude when they are challenged by stockholders.  The following case is an example of a stockholder challenge to a board decision and the court's implementation of the business judgment presumption.