In one case, a principal-agent have an actual authorized by the Board of Directors to sell the house or make deal with client A in Corporations before; however, the principal-agent no longer working in that Corporation. That principal-agent went beyond the authorize and using the client A information to make deal with client B.

This may lead Client A to believe the agent has the authority to give his information to make deal with client B.

Client A came to complaint and try to suit the Board of Directors because he think the director authorized that principal-agent to made deal with him. In this case, the Board of Director had authorized the principal-agent to sign and close the deal with client A; however, the agent go beyond the authority, so both director and client A want to suit him.

Can client A suit the Board of Directors, Corporations or principal-agent? Can Board of Directors suit the principal-agent? Are Corporations have a Limited Liability?

What is the principal-agent problem in Corporations?

What is the role of the Board of Directors concerning this problem?

Take an example of a publicly listed company and comment on their board composition by:

-------------How many Directors?

--------------Percentage of independent directors?

-------------Do you think they are diverse?

--------------Do you think they are active?