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Delaware reduced corporate directors' liability.

June 23, 1986

Under a law that will take effect July 1, corporate shareholders can limit or eliminate personal liability for their boards of directors for monetary damages resulting from the board's failure to live up to what is legally known as its duty of due care. However, the measure does not exempt directors or corporate officers from personal liability for violations of other duties, such as duty of loyalty and duty to act in good faith, or for fraudulent, illegal or intentional wrongdoing. Some of the nation's biggest companies are incorporated in Delaware, which has enacted tax laws and other measures to give the state an attractive business climate.

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