- 1 Marks
BCL – L1 – SA – Q91 – Company Directors
Question
Where a director acts dishonestly to the interest of the company. He will be held liable for
A Negligence
B Malefice acts
C Ultra-virus acts
D Breach of fiduciary duty
Answer
D
Explanation:
The correct answer is D because a director acting dishonestly breaches their fiduciary duty to act in the company’s best interests, making them liable. Negligence (A) involves carelessness, malefice acts (B) is not a legal term, and ultra-vires acts (C) relate to actions beyond authority, not dishonesty.
- Tags: Company Law, Director Liability, Fiduciary duty
- Level: Level 1
- Uploader: Samuel Duah