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Use the Fact Situation in Q1 to Answer the Related

Question 3

Multiple Choice

Use the fact situation in Q1 to answer the related question that follows. Assume that at the time A,B,and C were making their decision,C also had an interest in Gladstone Inc. ,which he did not disclose to A and B,but that C chose not to take part in the vote.Also assume that when Multi Corp went bankrupt,a receiver was appointed,who sued A,B,and C on behalf of the company.In this case,the receiver will


A) succeed against A and B,regardless of whether they were diligent and used the established degree of care.
B) not succeed against A,B,and C because when A and B voted,they were diligent and used the established degree of care.
C) not succeed against A,B,and C because there was no breach of fiduciary duty to Multi Corp Ltd.
D) succeed against C for failure to disclose his interest in Gladstone Inc.
E) succeed against A,B,and C because directors are jointly and severally liable.

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