Asked by
Jalyn Grant
on Nov 21, 2024
Verified
Which of the following is true of a shareholder's legal duties.
A) All shareholders have a fiduciary duty not to compete with the company
B) No shareholders ever have any legal duties
C) Shareholders typically have few legal duties, but majority shareholders can sometimes have fiduciary duties to the corporation and to minority shareholders
D) Shareholders typically have few legal duties, but minority shareholders can sometimes have fiduciary duties to the corporation and to majority shareholders
E) Shareholders have a fiduciary duty to each other, but not to the corporation.
Fiduciary Duty
A legal obligation requiring one party (the fiduciary) to act solely in another party's (the beneficiary's) interest when managing the latter's assets, involving loyalty and care.
Shareholder's Legal Duties
Obligations imposed on shareholders, including acting in the best interest of the corporation and adhering to corporate laws and regulations.
Majority Shareholders
Individuals or entities that own more than half of the total shares of a corporation, giving them significant control over company decisions.
- Comprehend the concept of majority and minority shareholder rights, duties, and potential misconduct.
Verified Answer
NS
Learning Objectives
- Comprehend the concept of majority and minority shareholder rights, duties, and potential misconduct.