General Authorization and the Business Judgment Rule

Corporate attorney Sergio Alejandro Alayón authored an article for Lexir in which he discusses Colombia's Decree 046 of 2024. This decree not only addresses conflicts of interest in a new light but also introduces advantages such as the general authorization for legal representatives when conflicts of interest arise within a corporation, along with the formal introduction of the business judgment rule in the country. He highlights the significance of these measures in facilitating business management by allowing administrators to make decisions under the assumption they are acting in good faith and in the company's best interest.

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