Michael Was a Director of Dot

question 45

Multiple Choice

Michael was a director of Dot.com Tomorrow Inc,incorporated under the Canada Business Corporations Act.He was charged with failing to ensure that the corporation maintained adequate safety standards for its workers.He was furious,claiming that he was innocent.Michael hired the most expensive lawyer he could find and rented a limousine with driver to take him to the court every day of the three-week trial.Each night of the trial,he dined out at the best restaurant in town.Eventually,he was acquitted and has asked the corporation to indemnify him for all these expenses.Which of the following is FALSE regarding the legal obligation of the corporation to indemnify Michael for these expenses?

• A)Dot.com may be obliged to indemnify Michael because he was substantially successful on the merits of his defence.
• B)Dot.com can only indemnify for reasonable expenses and,to the extent that Michael's expenses are not reasonable,they cannot be indemnified.
• C)Dot.com may be obliged to indemnify because Michael had reasonable grounds for believing his conduct was lawful.
• D)So long as Michael fulfilled his fiduciary duty to act in the best interests of the corporation,Dot.com may be obliged to indemnify him for reasonable expenses.
• E)Dot.com has to pay for everything but the limousine.

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Definitions:

Ovum

The female reproductive cell or egg, which can fuse with a male sperm cell to form a new organism.

Female Sex Cell

An egg or ovum, which is the reproductive cell produced by females that, when fertilized by a male sperm cell, can develop into a new organism.

Germinal

Pertaining to the earliest stage of development in organisms, or related to the generation of something new.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby and removing waste products.