Appointment to an executive or managerial position brings not only personal prestige but may also bring potential personal liability for a negligent act, or an act outside the appointee's authority or where a breach of duty is involved. Today's shareholders, employees, regulatory authorities, customers and creditors expect more from directors and officers and their companies than ever before. Their conduct and integrity is scrutinized with new vigor. Directors or officers can be held responsible for actual or alleged wrongful acts, errors or omissions, including negligent advice, misstatement or improper disclosure.
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