Opinion ID: 2516776
Heading Depth: 4
Heading Rank: 5

Heading: Independence of directors

Text: Judge Hunt found that the various directors of Nerox Power took their directions from Ross himself. [49] This finding is supported by trial testimony. Ross personally loaned $1.8 million for continuing the operations of Nerox Power, giving him substantial control over the operations of the company. Ross himself admitted that Nerox Power could not make any investments without some sort of loan from him. This is confirmed by the testimony of the two directors of Nerox Power. The first director of Nerox Power testified that he had limited involvement in the financial dealings of Nerox Power and did not even have the authority to sign checks for the company. When asked who he considered himself an employee of Nerox Power, Nerox Energy, or Nick Rossthe director answered Nick Ross. Artus, the second director of Nerox Power, testified that as director he recorded the deeds of trust at Ross's direction. Artus further testified that it was Ross's responsibility to ensure that there was enough money to pay the bills for Nerox Power. Given the financial control that Ross exercised over Nerox Power, this finding is not clearly erroneous.