A corporation may effectively limit the liability of directors' duty of due ________
A) Using corporate funds to buy directors liability insurance
B) Using the derivative action rule
C) Specifying in the articles of incorporation that directors will not be liable for willful negligence.
D) a and b
E) b and c

Question

Quizplus · Accepted Answer

Corporations can limit directors' liability by purchasing directors' liability insurance, which provides financial protection against claims of negligence or breach of duty.

A Corporation May Effectively Limit the Liability of Directors' Duty