So a shareholder who disagreed with an action outside the company's objects must sue directors for any loss.
Imperio Argentina sued producers and director for using her life without permission to make this film.
The guidelines, the lawyers said, would make it harder to sue directors who were not full-time employees of an institution.
Van Damage left that company after one year and a legal battle arose when he sued fellow directors for holding back revenues due to him.
Section 260 stipulates that such actions are concerned with suing directors for breach of a duty owed to the company.
Next, the draft would make it cheaper for disgruntled shareholders to sue directors for mismanagement.
The provision established the idea of minority investors being able to sue directors for a breach of fiduciary trust.
In 1993, the Resolution Trust Corporation sued Hyde and other directors for $17.2 million.
The case is a shareholder derivative suit, which allows shareholders to sue corporate directors they contend mishandled company affairs.
The lawsuit started because a CleanFlicks franchisee in Colorado pre-emptively sued major directors.
