April 26, 2024

Business Discretion Criteria

Isabella Díaz

Corporate attorney Isabella Díaz wrote an article for Lexir where she details the principle of "Business Discretion Criteria for Administrators." According to the author, this concept, known as the Business Judgment Rule in the U.S., is designed to support corporate administrators by presuming that their business decisions were adopted 1) in good faith and with loyalty and diligence, 2) in the best interest of the corporation and 3) with sufficiently informed judgment. The principle was recently incorporated into Colombian law under Decree 0046 of 2024. In this article, Ms. Díaz highlights the positive implications of this development.

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