In most states,a corporation may,with shareholder approval,limit the liability of directors for some breaches of the duties which they owe to the corporation.

Question

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Many states allow corporations to include provisions in their articles of incorporation that limit the liability of directors for certain breaches of duty, under certain circumstances, and with shareholder approval. This is known as exculpation.

In Most States,a Corporation May,with Shareholder Approval,limit the Liability of Directors