Directors May Escape Liability for Breaching Their Statutory Duty to Act

question 2

Multiple Choice

Directors may escape liability for breaching their statutory duty to act with care and diligence under s 180(1) if they can satisfy the business judgment rule.Which of the following statements about the rule is true?

• A)Directors must satisfy three out of the four tests.
• B)Directors must satisfy all four of the tests.
• C)Directors must satisfy one out of four tests.
• D)Directors must satisfy two out of the four tests.

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Definitions:

Cyclic AMP

A secondary messenger used for intracellular signal transduction, such as transferring the effects of hormones like glucagon and adrenaline.

GTP

Guanosine triphosphate, a molecule that provides energy for many biochemical cellular processes by hydrolysis of its high-energy phosphate bonds.

Autocrine

A process in which a cell releases a hormone or chemical messenger that attaches to autocrine receptors on the same cell, causing alterations in the cell's state.

Chemicals Produced by Neurons

Substances such as neurotransmitters that are synthesized and released by neurons to transmit signals across synapses.