Q
QuestionBusiness Law

According to the Lau & Johnson reading, shareholders in derivative litigation can overcome the business judgment rule. True False
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Answer

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Step 1
: Understand the problem

We are asked to determine whether the statement "According to the Lau & Johnson reading, shareholders in derivative litigation can overcome the business judgment rule" is true or false.

Step 2
: Gather relevant information

The Lau & Johnson reading discusses the ability of shareholders in derivative litigation to overcome the business judgment rule. The business judgment rule is a legal principle that presumes the decisions made by a corporation's board of directors are made in good faith and with the best interests of the company in mind. This rule can be challenged in certain circumstances, such as when there is evidence of fraud, self-dealing, or other wrongdoing.

Final Answer

True.

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