Buck is a director on the board of Construction Corporation. The board delegates work to Don, Construction's president, and other corporate officers. Buck fails to reasonably supervise the work. He is most likely liable for
A) negligence or mismanagement.
B) breach of the business judgment rule.
C) breach of the duty of loyalty.
D) violation of the articles of incorporation.

Question

Quizplus · Accepted Answer

Buck is likely liable for negligence or mismanagement because as a director, he has a duty to supervise the work of corporate officers reasonably. Failure to do so can result in liability for negligence or mismanagement.

Buck Is a Director on the Board of Construction Corporation