Under the Revised Act, a Director Who Is a Member

question 35

True/False

Under the Revised Act, a director who is a member of the board that declares an illegal dividend is not personally liable to the company for the amount that is illegal.

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Definitions:

Revenues

Total financial earnings of a company derived from its key operational processes, including the sale of products or services.

Equity

The value of the shares issued by a company, representing the ownership interest in the company's assets after liabilities are subtracted.

Accounts Payable

The short-term liabilities or obligations a company owes to its suppliers or creditors for goods and services received.

Stockholders' Equity

The ownership interest of shareholders in the assets of a corporation, calculated as total assets minus total liabilities.