This article reviews a recent California court decision stemming from the financial crisis which finds a difference in the protections available to directors and officers of California corporations. The article explains how directors of California corporations are protected by statute from lawsuits arising over honest mistakes of their business judgment; officers of California corporations, however, are not. The article concludes with advice for what this means for individuals who are either directors or officers of a California corporation.
- Summary by FizzLaw Team
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California Officers Need to Be More Careful than Directors