Corporate directors must perform their duties for the benefit of the shareholders. Suppose a corporate director convinces the board to authorize a substantial investment in a gold mine in the Fiji Islands. (There is no gold in the Fiji Islands). His/her purpose in convincing the board of this is to increase his/her holdings in a Fiji hotel. Is he/she liable if the corporation loses its entire investment? If so, under what theory would you impose liability? Are the other directors equally liable?

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a Yes the corporate director would be liable if the corporation lost its entire investment because h... View the full answer