A Director Who Becomes Involved in Litigation Because of His

question 24

True/False

A director who becomes involved in litigation because of his or her position has no right to be indemnified for the costs.

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Definitions:

Scalar Chain

A concept in management that denotes a clear line of authority in an organization, from the top management to the lowest rank.

Scalar Chain Principle

A concept in organizational management that asserts a clear and unbroken line of authority within the hierarchy of an organization from the top to the bottom.

Henri Fayol

A French industrialist and a pioneering management theorist who developed a general theory of business administration.

Hierarchy of Authority

A system in which different positions are ranked relative to each other within an organization, with higher levels having more power and responsibility.