The board of directors has a fiduciary duty to shareholders in taking action relative to a hostile takeover.

Name: The board of directors has a fiduciary duty to shareholders in taking action relative to a hostile takeover.
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

The board of directors has a legal obligation to act in the best interest of shareholders, which includes evaluating and responding to any threats posed by a hostile takeover attempt. This duty is known as their fiduciary duty.

The Board of Directors Has a Fiduciary Duty to Shareholders