Shareholders have sued board directors for losses arising from alleged mismanagement. Over the years 1984-87, a director liability crisis emerged in the U.S. because of accelerating litigation against corporate directors

The threat of litigation severely decreased the supply of qualified outside directors nationwide. In response to this crisis, many states have passed (i) statutes, which allow firms to adopt new (ii) that protect directors from shareholder suits.
_(i)_ _(ii)__
a. directors' immunity liability limitation provisions (LLPs)
b. liability limitation directors' immunity provisions (DIPs)
c. corporate immunity directors' indemnity provisions (DIPs)
d. liability limitation liability limitation provisions (LLPs)


D

Business

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