The Smith v.Van Gorkom decision underscores which of the following regarding statements of officers or directors?
A) An outside director,but not an inside director,may in good faith rely upon any statement of an executive officer.
B) An inside director,but not an outside director,may in good faith rely upon any statement of an executive officer.
C) Any director may in good faith rely upon any statement of an executive officer.
D) Not every statement of an executive officer can be relied upon in good faith.

Question

Quizplus · Accepted Answer

The Smith v. Van Gorkom decision established that not every statement of an executive officer can be relied upon in good faith. This means that directors must exercise their own independent judgment and conduct a thorough analysis before making decisions based on information provided by executive officers.

The Smith V