Rafi,a director of Super Service Station Corporation,does not attend a board meeting for three years.During that time,Twyla,Super's president,makes improper loans that cost the company $100,000.Rafi is most likely

Question

Quizplus · Accepted Answer

As a director, Rafi has a duty of care and loyalty to the company. By not attending board meetings for three years, Rafi may be considered neglectful of his duty of care, and therefore liable for any losses suffered by the company. The fact that Twyla made improper loans during this time suggests a breach of the duty of loyalty and potential mismanagement, for which Rafi may also be held liable as a director.

Rafi,a Director of Super Service Station Corporation,does Not Attend a Board