Explain how the business judgment rule applies to the boards of ...

[stevenposner]

Explain how the business judgment rule applies to the boards of homeowners' associations.

Question 2

Until a transfer is recorded on its books, a corporation is entitled to treat the person whose name is on its books as the owner of its stock.
  Indicate whether the statement is true or false

[lolol]

Answer to Question 1

The courts have begun deferring to the boards of the associations so long as the board holds meetings, obtains the necessary information (such as bids, expert opinions, etc.) prior to making decisions, and follows appropriate procedures in making decisions, including following processes such as notice and seeking input. The courts are, in effect, applying corporation law to these boards to allow them some latitude and room for judgment if the boards are acting responsibly even though reasonable minds could differ on the board's decisions, actions, and choices.

Answer to Question 2

TRUE