Corporate directors face personal liability for risky decisions, impacting shareholder protection.
Business decisions can be risky, and directors must balance risks and benefits. Directors can be held liable for decisions that harm the company or others. In Lithuania, there is no clear rule like the business judgement rule in common law countries to protect directors from personal liability. Courts use criteria like maleficence and rational risk when reviewing decisions, but there is no consistent standard. A common rule for evaluating business judgements is recommended to provide clarity and consistency in legal cases.