Asked by Angie Rivera on Jul 24, 2024
Verified
Belle is a director on the board of Construction Corporation. The board delegates certain tasks to Dido, the corporate president, and other officers. Belle fails to reasonably supervise the work. She is most likely liable for
A) negligence or mismanagement.
B) breach of the business judgment rule.
C) breach of the duty of loyalty.
D) none of the choices.
Negligence Or Mismanagement
Failure to exercise appropriate care or the mismanagement resulting in harm or loss.
Duty Of Loyalty
A legal obligation requiring individuals to act in the best interests of another party or entity, typically referring to corporate officers and directors.
- Discern scenarios that might cause breaches of corporate mandates by directors and officers, together with the potential legal ramifications.
- Describe the consequences of insufficient oversight of corporate executives and staff members.
Verified Answer
AA
Azmina AfiqahJul 24, 2024
Final Answer :
A
Explanation :
Belle's failure to reasonably supervise the work delegated to Dido and other officers can be considered negligence or mismanagement. Directors have a duty to oversee the corporation's management, and failing to do so can lead to liability for negligence. The business judgment rule protects directors' decisions made in good faith, and the duty of loyalty involves conflicts of interest, neither of which directly apply to the scenario described.
Learning Objectives
- Discern scenarios that might cause breaches of corporate mandates by directors and officers, together with the potential legal ramifications.
- Describe the consequences of insufficient oversight of corporate executives and staff members.