Practice question
Does Section 30’s first paragraph expressly include gross negligence as a ground separate from bad faith?
- No, only intentional fraud matters
- No, only ownership percentage matters
- Yes, gross negligence or bad faith in directing corporate affairs is expressly identified
- No, every lawful loss is automatically gross negligence
- No, negligence can never matter
Legal references
- Revised Corporation Code, RA 11232, Sections 30 and 33: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
Answer this question in flashcards to review your response and continue practicing.