Cole is a shareholder of Donut Holes,Inc.Cole will be deemed to have a fiduciary duty to Donut Holes and its minority shareholders if he has

Question

Quizplus · Accepted Answer

A shareholder will have a fiduciary duty to a corporation and its minority shareholders if they have a sufficient number of shares to exercise de facto control. This means that they have the power to make decisions that will affect the corporation and its shareholders. The other options do not necessarily indicate a fiduciary duty. A restriction on transferability or a right of first refusal are common provisions in shareholder agreements, but do not necessarily create a fiduciary duty. Watered stock refers to shares that were issued at a price lower than their fair value and does not relate to the shareholder's fiduciary duty.

Cole Is a Shareholder of Donut Holes,Inc