The reasons that directors and senior officers need to be held personally liable for the crimes committed by a corporation include all EXCEPT:
A) Some closely held corporations are run by shrewd crooks trying to hide behind the corporate veil.
B) Some corporations would view a fine as simply a "license" to do it again.
C) Some corporations are but a "shell", so when faced with a large fine simply go out of business and reorganize into another corporation.
D) This is an effective deterrent against corporate crime.
E) Criminal acts have corporate liability limitations as outlined in the CBCA.

Question

Quizplus · Accepted Answer

The statement "Criminal acts have corporate liability limitations as outlined in the CBCA" suggests that there are legal limitations to the extent of the corporate liability for criminal acts, which implies that directors and senior officers cannot always be held personally liable for crimes committed by the corporation. Therefore, option E is the correct answer. The other options describe legitimate reasons why directors and officers may be held personally liable in certain circumstances.

The Reasons That Directors and Senior Officers Need to Be