Traditionally,a transaction benefiting a director's self interest is ________ unless the director could show it was fair and reasonable to the corporation.

Question

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A transaction benefiting a director's self-interest is considered voidable, meaning it can be challenged or voided if the director cannot demonstrate that it was fair and reasonable to the corporation. This is known as the "business judgment rule." It is not necessarily illegal for a director to benefit from a transaction, but the transaction must be evaluated to ensure that it does not harm the corporation. Therefore, option A is incorrect, and option C is not entirely correct. Option D is also incorrect since only option B is correct.

Traditionally,a Transaction Benefiting a Director's Self Interest Is ________ Unless