Is Allison correct that she owes no duties to shareholders?
A) No,she is incorrect because she owes a duty of care to shareholders although she owes no other duties.
B) No,she is incorrect because she owes a duty of loyalty to shareholders although she owes no other duties.
C) Yes,she is correct because it is the directors who owe duties to shareholders.
D) She is partially correct.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.
E) No,she is incorrect because she owes both a duty of care and a duty of loyalty to shareholders.
Correct Answer:
Verified
Q72: How many votes will the minority shareholders
Q73: Which of the following is a term
Q74: Is Allison correct that officers cannot be
Q75: Under what circumstances are dividends illegal?
A)If the
Q76: While incorporating,the future owners of the corporation
Q78: Which of the following is false regarding
Q79: In the text case Auerbach v.Bennett a
Q80: Which of the following may be issued
Q82: There are four rights of directors explained
Q82: What are the requirements for being a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents