A director is disqualified from taking part in corporate action with respect to a matter in which the director has an undisclosed conflicting interest.

Question

Quizplus · Accepted Answer

According to company law, a director is obligated to disclose any interest or potential conflict of interest in a matter being considered by the company's board of directors. If the director fails to disclose the conflict of interest, they are disqualified from participating in any corporate decision-making related to that matter. Therefore, the statement is true.

A Director Is Disqualified from Taking Part in Corporate Action