The sound business judgment and immunity from liability rule is very tricky to overturn and the courts will generally not interfere unless there is incontrovertible evidence of fraud or misappropriation.
Calorie can sue for injury to its confidential information, infringement of its unregistered trademark and its copyright, for misappropriation of its trade dress, and can force Fancy-Free to change or close—all without the assistance of any registered intellectual property rights. By Jeremy Phillips
Forensic auditing strengthens control mechanisms, with the objective of protecting the business against financial crimes, be they potentially catastrophic one-off events that could threaten the viability of the business, or smaller-scale but repetitive misappropriations of company assets over a number
Similarly, assets are often overvalued in an attempt to bolster the company’s financial position and net worth. Besides such overvaluation of assets, which is usually perpetrated by management, misappropriation of assets is one of the most common frauds committed against a company By Zuraidah Mohd-Sanusi, Yusarina Mat-Isa