Under the Revised Act, Brafford, a director who is a member of the board that declares an illegal dividend, may be but is not under all circumstances personally liable to the company for the amount that is illegal even if she personally voted for the distribution contrary to the company's charter.

Question

Quizplus · Accepted Answer

Under the Revised Act, a director who is a member of the board that declares an illegal dividend may be personally liable to the company for the amount that is illegal, but it is not an automatic or unconditional liability. The director's liability would depend on factors such as their knowledge of the illegality, their actions in approving or declaring the dividend, and whether they acted in good faith and with due care.

Under the Revised Act, Brafford, a Director Who Is a Member