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I realise that a director can still be held for certain decisons made prior to their resignation, but can newly appointed directors also be held responsible for the actions/decisions of the previous directors who have resigned.
For example, 6 Directors make a decision to issue a contract to someone on very inflated terms. Shortly afterwards 5 of the directors resign and 5 new directors are appointed.
The share holders then complain that the contract should have been put out to tender and alternative quotes obtained - which would have identified the inflated price as being uncompetitive.
Can the new directors be held accountable for the 'waste' of money incurred.
For example, 6 Directors make a decision to issue a contract to someone on very inflated terms. Shortly afterwards 5 of the directors resign and 5 new directors are appointed.
The share holders then complain that the contract should have been put out to tender and alternative quotes obtained - which would have identified the inflated price as being uncompetitive.
Can the new directors be held accountable for the 'waste' of money incurred.
