John,the Controlling Shareholder of a Large National Company,elected Allan,Edward,and Mary

question 20

Multiple Choice

John,the controlling shareholder of a large national company,elected Allan,Edward,and Mary as its directors.John has just heard of a venture that may or may not be beneficial to the company,but using his power as controlling shareholder,wants to go ahead with it and tells the three directors to approve it,which they do.It then turns out that the venture does more harm than good to the company.In this case

• A)John owes no fiduciary duty to the corporation.
• B)John owes no duty to account to the corporation.
• C)John owes no duty to the corporation.
• D)John owes no duty of care to the corporation.
• E)all of the above

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Definitions:

Price Reduction

A decrease in the selling price of goods or services, often used as a strategy to increase consumer demand or clear out inventory.

Void Contract

An agreement that lacks legal enforceability or is null from its inception due to certain legal deficiencies.

Installment Contract

A contract that requires periodic payments over time for the purchase of goods or services.

Substantial Impairment

Significantly diminished value, function, or condition of an asset or property.