October 25, 2007 Why Do We Trust Directors? Posted by Julian Velasco This is a question that has been bothering me, and I was wondering what others thought: why do courts trust directors so much?  I'm not asking why we have a business judgment rule.  A great deal has been written on that topic, including by me.  I understand the reasons for that and agree whole-heartedly.  But we also have an entire fairness test for a reason. My concern is that courts are too ready to apply ...