What liability do individuals assume when they receive powers from directors?

When individuals receive powers delegated by directors, they essentially step into a position that allows them to act on behalf of the company, akin to the role of directors themselves. This delegation of authority typically comes with both rights and responsibilities that mirror those assigned to directors.

Individuals acting under the authority of directors assume a fiduciary duty to the company, meaning that they must act in the best interests of the corporation, exercise care, and avoid conflicts of interest. Additionally, they may also bear liability in cases of negligence or breach of fiduciary duty akin to that of the directors.

This correlation of rights and liabilities is crucial because it ensures accountability within the company structure, allowing for a cohesive and regulated approach to governance. Therefore, their assumption of similar rights and liabilities as directors recognizes the importance of maintaining high standards of conduct and responsibility in corporate governance.

In contrast to this, options suggesting no liability or limited financial liability do not reflect the full spectrum of responsibilities inherent in such a role, as all parties involved in managing the company must ensure that they act appropriately and within their designated powers.