Application of business judgment rule under Turkish law

If the board of directors' members are held liable for the damages arising from the liability cases to be filed against them in each case; it will cause the board of directors' members to become passive and remain hesitant in taking decisions. For this reason, as per US law, a principle referred to as business judgment rule has been developed by the case law. Business judgment rule protects the discretionary powers of the members of the board of directors' and ensures that the board of directors cannot be held responsible for the unexpected results of the decisions given under certain conditions. Within the scope of the study, the principles of the said law, which was not regulated under any laws or regulations under Turkish Law, were examined; and the conditions of application were evaluated. Keywords Business Judgment Rule, Discretionary Power, Liability