Aside from being responsible for fraud-related losses, a negligent board member could further hobble operations when it comes to insurance. “Insurance policies always have exclusions and they are usually specific, which varies on a fact to fact basis,” says Peyton. “The insurance company will ...
The BCL also provides for removal of an inefficient or inept board of directors. But, of course, things have to deteriorate pretty badly before full-blown litigation or the removal of an entire board becomes a serious consideration. Any reputable attorney will nearly always advise diplomacy and m...