Courts Have Held That Even If a Director Has Acted

question 15

True/False

Courts have held that even if a director has acted in good faith, he or she can still be held personally responsible.

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Definitions:

Quasi-contract

An obligation imposed by law to prevent unjust enrichment, where there is no actual contract between the parties.

Fair Market Value

Refers to the price at which an asset would trade in a competitive auction setting, reflecting its value in the eyes of both buyer and seller.

Damages

Compensation sought by or awarded to a party in a lawsuit for losses or injuries incurred due to another party's actions or negligence.

Pleasure Marriage

A temporary marriage contract, recognized in some cultures or religions, primarily aimed at legalizing sexual relations for a determined period.