The Court will not interfere with a board of directors decision that was reasonable and in good faith

The Court was moved to declare a decision of the board of directors of a company as void under the contention that it was made quickly, without thorough and professional background check. The Court rejected the motion and held that it was not proven that the decisions of the board of directors was made with mala fide or in unreasonableness that requires intervention of the Court. The Court will not replace the discretion of the directors, except in cases where it was proven that a decision was taken arbitrarily or with mala fide. In addition, the Court will take into consideration the implications of cancellation of the decision and the interests of the company. In this case, because the anticipated damage if the decision would be canceled was much higher than in case where the decision will be upheld, it was decided not to interfere with the decision.