Which of the Following Is NOT True of Shareholder Liability

Multiple Choice

Which of the following is NOT true of shareholder liability?

A) Shareholders are liable for watered stock
B) Shareholders are personally liable for receiving illegal dividends.
C) Shareholders are liable for a breach of contract if a stock subscription agreement was signed and no stock was purchased
D) Shareholders are liable for violations of the business judgment rule
E) Shareholders are liable for the debts of a corporation to the extent of their investment