Asked by David Frigoletto on May 27, 2024
Verified
Because of their positions within the corporation, directors cannot be held liable for the crimes of corporate employees.
Corporate Employees
Individuals who are hired to work for a corporation and often enjoy certain benefits and legal protections.
Directors
Individuals elected by shareholders to oversee and make decisions for a corporation.
- Understand the legal and fiduciary responsibilities of corporate directors and officers.
Verified Answer
EH
Ezzeldin HegazyMay 30, 2024
Final Answer :
False
Explanation :
Directors can be held liable for the crimes of corporate employees if it is proven that they were complicit in the crime, failed to supervise properly, or did not take reasonable steps to prevent the crime.
Learning Objectives
- Understand the legal and fiduciary responsibilities of corporate directors and officers.
Related questions
To Avoid Potential Liability for Misconduct in Corporate Operations, Directors ...
When Directors Vote on Issues Affecting the Corporation, Ordinary Matters ...
Corporate Officers Do Not Act as Agents of the Corporation
Corporate Shareholders Will Most Likely Be Held Personally Liable for ...
Corporate Officers Have Responsibility for All Policymaking Decisions Necessary to ...