(l-r) Blaise Chow, Janine Peress, and Ellie Sanders of Kennedys Law. Courtesy photos The business judgment rule has long been a protection for directors and officers, offering wide latitude for decisions made in good faith with the belief that those decisions serve the company’s best interests. A decision resulting in a bad outcome or honest mistake is generally shielded from liability where it did not involve a director’s or officer’s personal gain.