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This paper deals with fault-tolerant controller design for linear time-invariant (LTI) systems with multiple actuators. Given some critical subsets of the actuators, it is assumed that every combination of actuators can fail as long as the set of the remaining actuators includes one of these subsets. Motivated by electric power systems and biological systems, the goal is to design a controller so that the closed-loop system satisfies two properties: (i) stability under all permissible sets of faults and (ii) better performance after clearing every subset of the existing faults in the system. It is shown that a state-feedback controller satisfying these properties exists if and only if a linear matrix inequality (LMI) problem is feasible. This LMI condition is then transformed into an optimal-control condition, which has a useful interpretation. The results are also generalized to output-feedback and decentralized control cases. The efficacy of this work is demonstrated by designing fault-tolerant speed governors for a power system. The results developed here can be extended to more general types of faults, where each fault can possibly affect all state-space matrices of the system.