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
Q21: What best describes the circumstances in which
Q30: Which of the following statements is TRUE?
Q33: Which if the following statements is FALSE?
A)A
Q37: Which of the following statements is TRUE?
Q38: Ebo Corporation was incorporated under the Canada
Q42: Roxanne is a minority shareholder in Sumner
Q44: A derivative action
A)is a type of crime
Q44: Robyn and his eight friends bought shares
Q45: A strict liability offence is
A)a type of
Q46: As a result of dealing with Barry,Zita
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents