To clarify a bit on the above matter; it is less applicable to traditional private companies. By that I mean owner managed; where all shareholders are also directors and all directors are also shareholders.
To understand the risks you need to understand that the company, the board and the shareholders are three separate juristic groups. A company, represented by even a single or more shareholders, or by a single or more directors, can sue a director for losses it incurs as a result of a director's actions (or inaction). It follows then that directors / shareholders are unlikely to sue themselves.
The moment there is a shareholder who is not a director, these risks arise and directors become exposed to personal litigation by either the company, or it's shareholders.
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