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Is Tina Accurate That She Owes No Duties to Shareholders

Question 59

Multiple Choice

Is Tina accurate that she owes no duties to shareholders?


A) Yes, she is accurate because it is the directors who owe duties to shareholders.
B) No, she is inaccurate because she owes a duty of care to shareholders although she owes no other duties.
C) No, she is inaccurate because she owes a duty of loyalty to shareholders although she owes no other duties.
D) No, she is inaccurate because she owes both a duty of care and a duty of loyalty to shareholders.
E) She is partially accurate. She owes both a duty of care and a duty of loyalty to minority shareholders, but no duties to majority shareholders because the law assumes that they have the power to protect their own interests.

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