Gargantua Inc is a very large company with a very large board of directors.Lada is one of those directors.The corporation recently became involved in a number of scandals.As a result, the various members of the board of directors have been named as defendants in several lawsuits.Lada is, of course, hoping to avoid liability.Which of the following statements is TRUE?
A) As a director, Lada is personally responsible for the accuracy of any documents that accountants prepared on behalf of the company.
B) If another director was granted sole responsibility for the corporation's financial dealings, Lada cannot possibly be held liable for misconduct that arose in connection with those financial dealings.
C) The business judgment rule states that business decisions of the directors will not be found to be a breach of duty so long as they were within the range of reasonable alternatives available and the process by which the decision was taken was reasonable.
D) In order to protect shareholders, judges require proof that every decision made by a board of directors was the best decision possible.
E) Only officers, not directors, are responsible for any corporate wrongdoing.
Correct Answer:
Verified
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