Belle is a director on the board of Construction Corporation. The board delegates certain tasks to Don, the corporate president, and other officers. Belle fails to reasonably supervise the work. She is most likely liable for

Question

Quizplus · Accepted Answer

Belle as a director on the board of Construction Corporation has a duty to reasonably supervise the work delegated to the corporate president and other officers. If she fails to fulfill this duty, she may be held liable for negligence or mismanagement. Negligence refers to a failure to exercise reasonable care, while mismanagement refers to a failure to properly manage the affairs of the corporation. Belle would not be liable for breach of the business judgment rule, which protects directors from liability for decisions made in good faith and with reasonable care. She would also not be liable for breach of the duty of loyalty unless she had a conflict of interest or engaged in self-dealing.

Belle Is a Director on the Board of Construction Corporation