With Respect to Liability for Improper Dividends, a Non-Breaching Director

question 31

True/False

With respect to liability for improper dividends, a non-breaching director and an innocent shareholder are both fully protected from any liability for repayment due to their good faith.

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Definitions:

Inventory

The total amount of goods and materials held by a company awaiting sale or use in production.

Accounts Receivable

Funds that customers owe a business for products or services already delivered or utilized but not yet paid for.

Raw Materials

Fundamental substances or components used in the initial stages of the manufacturing process to produce goods.

Cash Disbursements

The payment of cash by a business for expenses, purchases, or obligations.