What is the burden of a director to prove that they received a personal benefit from a transaction?
California, United States of America
The following excerpt is from Alexandros v. Cole, Consol. with G044362, G043715, Super. Ct. No. 06CC07881 (Cal. App. 2011):
p. 1045.) "Once it is shown a director received a personal benefit from the transaction, . . . the burden shifts to the director to demonstrate not only the transaction was entered in good faith, but also to show its inherent fairness from the viewpoint of the corporation and those interested therein. [Citations.]" (Heckmann v. Ahmanson (1985) 168 Cal.App.3d 119, 128.)
(2) Cole and Carnino
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