Unlike the directors of other corporations, the directors of a close corporation can take any action without breaching their fiduciary duties.

Question

Quizplus · Accepted Answer

Unlike public corporations, close corporations have a smaller number of shareholders who are typically involved in the management of the company. Therefore, the directors of a close corporation still have fiduciary duties to act in the best interest of the corporation and its shareholders. Any action taken by the directors must still be lawful, with due care, and not for their own personal benefit at the expense of the corporation.

Unlike the Directors of Other Corporations, the Directors of a Close