Major formed the Dix Corporation for the purpose of operating a business to repair, install, and sell appliances. Major is the president of the board of directors of Dix. •Pine, one of Dix’s largest creditors, has asserted that Major is personally liable for all of the debts of Dix because he instructed several of Dix’s customers to make checks payable to the order of Major which were deposited in his individual account and not recorded on the corporate books. •Dix’s board of directors unanimously voted to have Dix reacquire 10,000 shares of its common stock. In determining whether to reacquire the shares, the board of directors relied on reports and financial statements that were negligently prepared by Dix’s internal accounting department under the supervision of the treasurer and reviewed by its independent accountants. The reports and financial statements indicated that Dix was solvent and there were sufficient funds to reacquire the shares. Subsequently, it was discovered that Dix had become insolvent and had liquidity problems and losses. Shareholders are attempting to hold the board members personally liable because they voted to reacquire the shares while Dix was insolvent. Discuss the above situations, including the applicable rule of law, appropriate terminology, and the most probable outcome of each