As fiduciaries of the corporation, directors incur liability for losses when they are caused by bad faith.

Name: As fiduciaries of the corporation, directors incur liability for losses when they are caused by bad faith.
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

Quizplus · Accepted Answer

Directors, as fiduciaries of a corporation, have a duty to act in the best interest of the corporation and its shareholders. When they act in bad faith, leading to losses, they can indeed incur liability for those losses due to breaching their fiduciary duties.

As Fiduciaries of the Corporation, Directors Incur Liability for Losses