The Revised Act authorizes the articles of incorporation to include a provision eliminating or limiting, with certain exceptions, the liability of a director to the corporation or its shareholders for any action he takes, or fails to take, as director. These limitations or exceptions, for which liability would not be affected, include:

Question

Quizplus · Accepted Answer

All of these exceptions are correct and must be included in the articles of incorporation for the limitation or elimination of director's liability to be valid. These exceptions ensure that directors cannot escape liability for intentional harm or wrongdoing, including receiving illegal financial benefits, violating the law or making unlawful distributions.

The Revised Act Authorizes the Articles of Incorporation to Include