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Business Law Chapter 34.1
Terms in this set (4)
Dawson states that he is Chairman of the Board and the Chief Executive Officer of the company. This makes him:
an inside director
Assume that Dawson and the rest of the board of directors decide in good faith to rebuild the plant in Miami and to pay the workers. While making this decision, the board follows all of its duties. The decision however turns out to be a horrible one and the company goes bankrupt because of it. Decide:
Dawson and the other board members would be protected from liability because of the business judgment rule.
Assume that the question of whether to rebuild the plant in Miami or in China came to a vote by the board of directors. The board voted to move the plant to China and Dawson thought that this was in violation of the duty of care and was the only director to vote against it. It turns out that he was correct and the shareholders decide to sue the directors. Which of the following is true?
Dawson would be best protected if he became a dissenting director.
Assume that the question of whether to rebuild the plant in Miami or in China came to a vote by the board of directors. The board voted to move the plant to China. When the company lost money because of this, the shareholders sued. The shareholders lost the lawsuit and Dawson was reimbursed by the corporation for his personal legal expenses. This was due to Dawson's:
right to indemnification.
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