A NQDC Plan Cannot Discriminate in Favor of Officers or Other

question 19

True/False

A NQDC plan cannot discriminate in favor of officers or other highly compensated employees.

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Definitions:

Usurped Corporate Opportunity

This refers to a situation where an individual, often an executive or director, takes for their own benefit an opportunity that should rightfully belong to the corporation.

Unlawful Distributions

Refers to the illegal dispensation, sharing, or allocation of assets or resources, often seen within the context of corporations or trust laws.

Director Liability

The legal responsibility of corporate directors for actions or omissions that cause harm to the company or its shareholders.

Unlawful Distributions

Financial distributions made by a company to its shareholders that violate laws or the company's own regulations, potentially harming the company or its creditors.