It is certainly legal, but that does not mean it has no consequences. The directors could be sued for negligence. Their job is to ensure the company complies with all laws and acts in the best interests of shareholders. By not ensuring compliance, they have exposed the company to significant losses and are therefore negligent. You might argue that they could not possibly know that the wording was wrong, and this is true. But they appointed the CEO whose job it is to run the company and obviously failed to do it adequately.
It is certainly legal, but that does not mean it has no...
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