A Director's Failure to Properly Supervise a Subordinate Who Causes

question 78

True/False

A director's failure to properly supervise a subordinate who causes a loss to the corporation would be considered a breach of the duty of care.

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Definitions:

Insurable Interest

The requirement that a person stands to suffer a financial loss or certain other kinds of losses if the insured event occurs.

Retains

implies holding onto or keeping in possession, often used in legal and financial contexts to describe holding onto services, rights, or properties.

Shipment Contract

An agreement between a seller and buyer where the seller is obligated to ship the goods and the buyer is obligated to accept and pay for them, under specified terms.

Title Passes

The transfer of ownership of property from one party to another, typically upon satisfaction of specified conditions.