A shareholder that owns sufficient shares to exercise de facto control over a corpora?tion owes a fiduciary duty to the minority shareholders.

Question

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When a shareholder owns a significant number of shares in a corporation, they may have the ability to influence the decisions and operations of the company. In these cases, the controlling shareholder is said to owe a fiduciary duty to the minority shareholders, meaning they must act in the best interests of all shareholders and not just themselves. This is based on the principle that a controlling shareholder has a power imbalance over the minority shareholders, and as such, they have a responsibility to act fairly and responsibly.

A Shareholder That Owns Sufficient Shares to Exercise De Facto