The remedy for a director's breach of fiduciary duty is:
A)a suit in equity by the corporation.
B)a derivative suit instituted by a shareholder to require the director to pay to the corporation the profits obtained through the breach.
C)a class action suit by the shareholders.
D)Both (a) and (b).

Question

Quizplus · Accepted Answer

A breach of fiduciary duty by a director can be remedied by a suit in equity by the corporation and a derivative suit by a shareholder to require the director to pay to the corporation the profits obtained through the breach. Both (a) and (b) can be pursued as remedies. A class action suit by the shareholders may also be an option, but it is not the primary remedy for a breach of fiduciary duty by a director.

The Remedy for a Director's Breach of Fiduciary Duty Is