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Is Allison Correct That She Owes No Duties to Shareholders

Question 77

Multiple Choice

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:

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