The Board of Directors for Sarah’s Seltzers, Inc., voted to…
The Board of Directors for Sarah’s Seltzers, Inc., voted to change the recipe for its most popular beverage based on research which indicated the new ingredients would better align with customer preference. Unfortunately, the change was not well-received by consumers and sales dropped. If a shareholder sues the directors for breach of their fiduciary duty of care to Sarah’s Seltzers, Inc., the directors will be protected from individual liability by the ____________ if they can demonstrate ____________.