What is the likely result of a director's exposure to potential liability on the purchase of a business asset on his own behalf if the corporation he works for is later acquired by a third party that was also interested in the asset? 

Directors would be discouraged from pursuing these opportunities, and the market for the assets would suffer because there would be less competition. 

Directors would be encouraged to pursue these opportunities because they are indemnified from liability by their corporations.

Because directors acting in their individual capacity have fewer resources than corporations, the market for these types of assets would become more efficient by removing these types of frivolous bids.