The Revised Act Authorizes the Articles of Incorporation to Include

question 48

Multiple Choice

The Revised Act authorizes the articles of incorporation to include a provision eliminating or limiting, with certain exceptions, the liability of a director to the corporation or its shareholders for any action he takes, or fails to take, as director. These limitations or exceptions, for which liability would not be affected, include:

• A) the amount of any financial benefit the director receives to which he is not entitled, such as a bribe, kickback, or profits from a usurped corporate opportunity.
• B) an intentional infliction of harm on the corporation or the shareholders.
• C) liability under Section 8.33 for unlawful distributions.
• D) an intentional violation of the criminal law.
• E) All of these are correct.

---

Definitions:

Welfare Payments

Government-provided financial assistance to individuals or families in need to support basic living expenses.

Homeless Persons

Individuals who do not have an adequate or permanent place to live, often lacking regular access to safe shelter.

Privatized

The transfer of ownership or control of a business or industry from the government to private individuals or organizations.

Fallacy of Composition

The erroneous belief that what applies to individual members of a group necessarily applies to the group as a whole or vice versa.