Frank is a controlling shareholder in E-prise,Inc.Frank:
A) may not enter into unfair business transactions with the corporation.
B) has a fiduciary duty to minority shareholders.
C) may not exclude minority shareholders from beneficial arrangements involving stock.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

All of the statements are correct. As a controlling shareholder, Frank has a duty to act in the best interests of the corporation and all its shareholders, including minority shareholders. He cannot enter into unfair business transactions with the corporation that would harm other shareholders, and he has a fiduciary duty to act with the utmost good faith and loyalty towards all shareholders. Additionally, he cannot exclude minority shareholders from beneficial arrangements involving stock, as all shareholders are entitled to equal treatment.

Frank Is a Controlling Shareholder in E-Prise,Inc.Frank