In some situations, a majority shareholder owes a fiduciary duty to minority shareholders.

Question

In some situations, a majority shareholder owes a fiduciary duty to minority shareholders.​

Quizplus · Accepted Answer

A majority shareholder may owe a fiduciary duty to minority shareholders in certain situations, such as when making decisions that affect the value of minority shares or engaging in self-dealing transactions. This duty requires the majority shareholder to act in good faith and in the best interests of all shareholders, not just themselves. Failure to meet this duty can result in legal action and potential liability for the majority shareholder.

In Some Situations, a Majority Shareholder Owes a Fiduciary Duty