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Yes, using the term liable was a mistake. I meant "responsible". I also should have put my last sentence in its own paragraph. I stand by this, and consider... You are a CFO of a subsidiary. You have certain legal requirements. Only certain people may speak for your org, be it CxO level, or the board. If you discover a board member speaking as if it has CxO level authority, or worse, some non-board, or CxO actor running around, claiming to represent your company on financial matters, you must seek and act on that malfeasance. You cannot simply allow someone, with your knowledge, to speak for your corp, without approval. The board / directors appoint top execs, giving them executive power. No one else may claim it. So, someone running around, negotiating salary deals, speaking for a subcorp? Very shady, hard to believe it would not get back to the board or that the board or executive branch did not know. |
This isn’t logic, it’s history. If you’re interested in commenting on it, why not read something about the actual lawsuit? In this case, specific people were caught making certain agreements that are against the law. The executives did know, because they were the ones making the agreement, and they were caught. People directly involved included Steve Jobs (CEO of Apple) and Eric Schmidt (CEO of Google).