Lars was the director of a corporation that operated as a travel agency. The industry was subject to government regulations and the maintenance of trust funds on behalf of travelers who paid for their tickets
Lars left the operation of the corporation to the officers and never informed himself of the obligations which the corporation had within the travel industry. Consequently, it came as a surprise to him when the corporation's licence to operate as a travel agency was suspended for non-compliance with government regulations. The corporation had to shut down its business, and faced severe penalties from the government for non-compliance. Which of the following is TRUE?
A) The shareholders could successfully sue Lars in tort for breaching his duty to exercise the skill of a reasonable person.
B) The shareholders could successfully sue Lars for breach of his fiduciary duty to act honestly and in good faith.
C) The shareholders' only remedy is to have Lars removed as a director of the corporation.
D) The shareholders have no remedy against Lars, only against the officers of the corporation who did not comply with the government regulations
E) Both A and B
A
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Which of the following is not a finding of previous empirical research on income tax allocation?
a. Income using income tax allocation had a higher degree of association with security price behavior than income determined without income tax allocation. b. The net-of-tax method using a tax rate significantly higher than existing rates had a higher association with security prices than income tax allocation using existing rates. c. There was a better association of net deferred tax liabilities to firm value under SFAS No. 109 than under its predecessor when tax rates increased under the Revenue Reconciliation Act of 1993. d. Investors do not view deferred tax liabilities as real liabilities.
Negotiated rulemaking has been criticized as too costly and too time consuming
a. True b. False
Harry's razors are a high quality product at a value price. The current product manager wants to use a generic brown box to save money. How might this affect customers?
A. customers will be unaffected B. the brown box will signal high quality to customers. C. customers will likely perceive the product to be of poor quality. D. the customers will develop a positive brand image E. customers will not recognize the product.
Regarding restrictive covenants, which of the following statements is NOT correct?
a. restrictive covenants help protect an employer's business assets b. restrictive covenants are upheld only for top level managers and CEOs c. restrictive covenants attempt to curtain many types of competitive conduct d. all of these are true