Corporate directors may be found personally liable for their poor business decisions that adversely affect the corporation, even if those decisions are made with diligence and in good faith.

Question

Quizplus · Accepted Answer

Corporate directors are generally protected by the "business judgment rule," which shields them from personal liability for decisions made in good faith and with the belief that they are acting in the best interest of the corporation, even if those decisions ultimately have adverse effects.

Corporate Directors May Be Found Personally Liable for Their Poor