Asked by Lauren Lawlor on Jul 09, 2024
Verified
Betsy is a director of ChemCo Inc. Because of this position, she becomes involved in litigation. With respect to the costs, fees, and damages involved, she has a right to
A) access the corporation's books, records, facilities, and other property.
B) be reimbursed, or indemnified.
C) use confidential corporate information for personal advantage.
D) subordinate the corporation's welfare to the director's personal interest.
Litigation
The legal process of resolving disputes or claims between parties in court.
Indemnified
Protected against financial loss or compensated for loss or damage, often through insurance or indemnity clauses in contracts.
- Identify the rights and protections available to directors and officers, such as indemnification and the business judgment rule.
Verified Answer
SS
syahidatul syakirahJul 11, 2024
Final Answer :
B
Explanation :
Betsy, as a director involved in litigation related to her position at ChemCo Inc., has the right to be reimbursed or indemnified for costs, fees, and damages incurred in the course of performing her duties, provided her actions were in good faith and in the best interests of the corporation.
Learning Objectives
- Identify the rights and protections available to directors and officers, such as indemnification and the business judgment rule.
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