Answer Happy

Jane is the sole director and shareholder of a failing corporation. In her role as director, Jane has elected to declare dividends even though doing so will cause the corporation to default on its outstanding loan from the bank. Which statement best describes Jane's risk of liability for this decision? She can be personally sued for breaching her duty of care to a creditor of the corporation She is immune from liability because of the separate legal existence of the corporation She is immune from liability because she is a director of the corporation She can be personally sued by the creditor because she has breached her duty of competence