Ultimately, it lays in the question of DUE DILIGENCE. Directors of any company have a role to play, to protect & ensure the company under their charge progresses. Most likely in a well organized company, directors or the chairman would instruct their company lawyers to perform DUE DILIGENCE upon any individual who seeks to be a member of the board - background checks, source of funds to join the board, etc. Not just ANYONE can join any company by just laying a ton of money on the boardroom table in reality. similarly with our laws on background checks on potential tenants wishing to rent a room on whether they are bona fide law abiding foreigners/locals or illegal overstayers.
The investor may hide or use falsified documents, or even many ways to join the board. Ultimately, had due diligence been performed before an individual became accepted to the Board? That is a question that the directors will face, not just to directors or shareholders, but even to the customers whom patronized their outlets, as none would want to support a company that lives off the suffering of others thru illicit funding.
