PRC-3 · Chapter 2 · Question 46 of 61
Mr. Tariq, an executive director of XYZ Ltd, is found guilty of committing massive financial fraud involving company accounts. Under corporate law, where must Mr. Tariq pay court-ordered restitution from?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) His personal account
Explanation
While companies offer limited liability, directors who commit outright fraud or illegal acts lose this protection and are personally liable for their crimes.
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