Practice question
A board receives a carefully documented assessment and chooses a lawful expansion. Demand unexpectedly collapses. The only allegation against the directors is that they held office when the corporation lost money; no unlawful assent, gross negligence, bad faith or conflicting interest is alleged or proved. What follows under Section 30?
- Loss and office alone do not establish its personal-liability grounds
- Every director automatically pays every corporate debt
- Any unsuccessful decision conclusively proves bad faith
- The corporation legally never existed
- The directors must refund all unrelated profits
Legal references
- RA11232 Section30: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
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