In Peoples Department Stores Inc. et al. v. Wise et al., the Supreme Court of Canada had to clarify to whom a director owes its duties. What did the Court hold?

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The Court held that a director owes a fiduciary duty to the corporation only, while a duty of care can also be owed to other stakeholders. The fiduciary duty includes the duty to act in the best interest of the corporation, while the duty of care includes the duty to exercise reasonable care, skill, and diligence in the management of the corporation's affairs. Other stakeholders, such as employees or creditors, may have rights and interests that the director should consider, but these do not rise to the level of a fiduciary duty owed to them.