Corporations: Fiduciary Duties of Directors and Officers

Updated 10/21/2023

Paul Weitzel,

Paige G. DuRandt,

Lauren M. Kubat,

Jacob H. Owens, CPA

You serve on Best Bikes's board with nine other directors.

Suppose one of the directors is the CEO of a tire manufacturer and she'd like the two companies to work together. Should this be allowed? Should it matter if it's a good deal?

Suppose another director wants to move the company into other forms of transportation, taking out huge loans to research teleportation technology, which scientists consider pure science fiction. Should shareholders be able to stop this plan?

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