4 ms·
He is the biggest shareholder and has the supermajority of voting shares, how can he violate his own benefit? He can only violate fiduiciary duties towards smal
by anticensor 7y ago
He is the biggest shareholder and has the supermajority of voting shares, how can he violate his own benefit? He can only violate fiduiciary duties towards smaller shares.
- elliekelly 7y agoYou've actually just made me realize I overstated his duty to shareholders in my original comment but it's too late to edit. My apologies. A director doesn't owe a fiduciary duty (which is the highest standard of care one person can owe another) but a duty of "care and loyalty" which is a step below a fiduciary. The outcome is the same though. A director's "duty of loyalty" means that he or she cannot personally benefit at the expense of the corporation or it's shareholders. The number of shares he owns and the voting power is irrelevant as the duty applies to all shareholders.