Answer:
There are several major risk to the corporation like loss of dealership due to the lack of funds being used some where else etc.,
All the board of directors will gain a totally negative advantage because of the reputation problem between upper directors.
Personally, it is very overwhelming to act unnaturally but eventually it end inn violation if one step back so moving along is the only way.
Recommendations on the proper use of budget and finds can be made like using funds first where necessary or authorize access to a limited amount of funds for other than normal corporation activities.
Moving along with a non-futile strategy is the only way to protect against a potential liability.