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:

Royalty

Money that employees or others receive based on sales, for example an author or musician.

Percentage

A mathematical concept that represents a portion of 100, used in describing proportions and rates in various contexts.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service.

Sales

The exchange of a commodity for money; the action of selling something.