To protect directors from exposure to personal liability in the case of violations of statutes related to the environment and competition,corporations often include terms in the directors' contracts that provide indemnification for losses they incur and legal expenses associated with involvement in these types of actions.

Question

Quizplus · Accepted Answer

This statement is true. Many corporations include indemnification clauses in the contracts of their directors to protect them from personal liability and provide financial support in case of any legal actions related to environmental and competition law violations.

To Protect Directors from Exposure to Personal Liability in the Case