Practice Question
The directors of a corporation have no fiduciary duty to the shareholders.
Answer +
FALSE
Step-by-step solutions +
Directors of a corporation have a fiduciary duty to act in the best interests of the corporation.
This duty inherently includes protecting shareholder interests, as shareholders are key stakeholders.
The fiduciary duty means that directors must prioritize the corporation’s welfare over their own personal gain.
Final Answer: FALSE
This duty inherently includes protecting shareholder interests, as shareholders are key stakeholders.
The fiduciary duty means that directors must prioritize the corporation’s welfare over their own personal gain.
Final Answer: FALSE