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Source Necessary and Proper Clause Necessary and Proper Clause Showing the closest available flashcard practice.

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Corporate officers receive repeated written warnings that a plant is violating safety regulations. They deliberately ignore the warnings because stopping production would reduce quarterly bonuses.
Which fiduciary-duty concept is most directly implicated?

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Bad faith applies only to shareholders and never to directors or officers. Bad faith may be shown when fiduciaries consciously disregard known legal duties or intentionally act for a purpose other than the corporation's best interests. Bad faith is the same thing as a harmless typographical error in minutes. Bad faith requires unanimous shareholder consent to sue.

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