Protecting minority investors: Extent of director liability index (0-10)
Wat erin zit
The extent of director liability index measures when board members can be held liable for harm caused by related-party transactions and what sanctions are available. It has seven components: (i) whether shareholders can sue directly or derivatively for the damage the transaction causes to the company; (ii) whether a shareholder plaintiff can hold Mr. James liable for the damage the Buyer-Seller transaction causes to the company; (iii) whether a shareholder plaintiff can hold other executives and directors (the CEO, members of the board of directors or members of the supervisory board) liable for the damage the transaction causes to the company; (iv) whether Mr. James pays damages for the harm caused to the company upon a successful claim by the shareholder plaintiff; (v) whether Mr. James repays profits made from the transaction upon a successful claim by the shareholder plaintiff; (vi) whether Mr. James is disqualified upon a successful claim by the shareholder plaintiff; and (vii) whether a court can void the transaction upon a successful claim by a shareholder plaintiff.