Practice question
A director argues that absence of subjective bad faith necessarily defeats every Section 30 claim, despite proven gross negligence in directing affairs and resulting damage. Which is correct?
- Gross negligence is independently identified, so disproving bad faith alone does not answer that stipulated ground.
- Bad faith is the only possible ground
- Every negligence claim requires a personal profit
- The corporation can never suffer recoverable damage
- Only a director’s salary determines liability
Legal references
- Revised Corporation Code, RA 11232, Sections 30 and 33: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
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