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So even if she had nothing to do with this and had no knowledge of what was going on she should be prosecuted?

No. But, It was her job to know what was going on. People treat directorships as plum prestige assignments when in reality they have an important role to fulfill overseeing managment on behalf of the shareholders. Simple ignorance may be enough to avoid prosecution but it should not be enough to protect her from shareholder lawsuits.

If people try hard enough they can hide infromation from anyone. Look how Enron duped professional analysts that do this kind of stuff for a living. I think that unless it can be proven without a doubt that she knew what was going on no one should have a case against her.