Abstract:
In Malaysia, the corporate boardroom operates under the protection of the Business Judgment Rule (BJR), a legal doctrine safeguarding directors who act in good faith and with reasonable care. This principle, embedded in the Companies Act 2016, ensures directors are not held personally liable for decisions made in honest pursuit of the company's best interests. By encouraging calculated risk-taking and innovation, the BJR strengthens corporate governance and decision-making. However, it demands accountability, as directors must demonstrate diligence and avoid conflicts of interest. In Malaysia's evolving corporate landscape, the BJR balances entrepreneurial freedom with legal oversight, promoting sustainable business growth.
