Business judgment cases differ in Ontario, Delaware
With all the focus on corporate governance these days, the business judgement rule is a hot topic.
Under the business judgement rule, courts defer to the specialized expertise of corporate directors, in a manner somewhat similar to the deference given to some administrative tribunals. The Ontario court of Appeal described it thus in Maple Leaf Foods Inc. v. Schneider Corporation (1998), 42 O.R. (3d) 177: “ Provided that directors have acted honestly and reasonably, the court ought not to substitute its own business judgement for that board of directors.”
Delaware is arguably the most important jurisdiction for corporate law in the U.S. The Delaware state courts have recently handed down two important decisions on business judgement rule: Omnicare, Inc v N.C.S. Healthcare, Inc.,  DE-QL 288 in April which dealt with the rule in the corporate take-over context…
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