Which of the Following Common Law Duties Are Imposed on Directors

question 39

Multiple Choice

Which of the following common law duties are imposed on directors of a company?

• A)To act in good faith and the best interests of the company.
• B)To avoid conflicts of interest.
• C)To be personally liable for unpaid debts.
• D)All of the above.
• E)A and B only.

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Definitions:

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to perform certain obligations of a contract.

Damages Determination

The process by which courts calculate the amount of money to be awarded to a party in a lawsuit for losses or injuries suffered.

Special Use Loss

A financial loss incurred due to the specialized nature of property or equipment that limits its use or marketability.

Fundamental Breach

A severe violation of a contract that permits the aggrieved party to terminate the agreement and potentially seek damages.