In Israel, amid the controversy over the judicial reform, boards of public companies must decide whether and how to respond to the legislative changes — and their decisions are likely to be scrutinized by shareholders, given the rise in derivative claims. A recent Delaware court ruling in the Disney case sheds light on the issue: it held that the ‘business judgment rule’ protects directors who choose to steer the company on political and social grounds too, as long as the decision followed an orderly discussion. Adv. Noam Zamir on the implications for companies in Israel.
