Which of the following is NOT true of shareholder liability?

Question

Quizplus · Accepted Answer

Shareholders are generally not personally liable for violations of the business judgment rule. The business judgment rule protects directors and officers from liability for decisions made in good faith and in the best interest of the corporation, even if those decisions turn out to be poor in hindsight. Shareholders, as investors, are not typically involved in the day-to-day decision-making of a corporation and thus are not held to this standard.

Which of the Following Is NOT True of Shareholder Liability