Clark is a shareholder of Bedrest Mattress Company.Clark will be deemed to have a fiduci?ary duty to Bedrest and its minority share?hold?ers if he has

Question

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A shareholder will be deemed to have a fiduciary duty to the corporation and its minority shareholders if he or she has a sufficient number of shares to exercise de facto control. This means that the shareholder has the power to influence or control the decisions made by the board of directors or management of the company. This fiduciary duty requires the shareholder to act in the best interest of the corporation and its shareholders, rather than solely in their own self-interest. Preferred stock, a right of first refusal, and watered stock do not necessarily indicate de facto control and therefore do not automatically impose a fiduciary duty.

Clark Is a Shareholder of Bedrest Mattress Company