A director or an officer who breaches the duty of care is personally liable to the corporation and its shareholders for any damages caused by the breach.

Question

Quizplus · Accepted Answer

This is known as the duty of care standard, which requires directors and officers to make informed and reasonable decisions for the benefit of the corporation and its shareholders. If they fail to meet this standard and cause damages, they can be held personally liable.

A Director or an Officer Who Breaches the Duty of Care