In Peoples Department Stores V

question 13

Multiple Choice

In Peoples Department Stores v.Wise (2004) ,244 DLR (4th) 564 (S.C.C.) ,the court noted that it may be legitimate for directors to consider inter alia the interests of shareholders,employees,suppliers,creditors,consumers,governments,and the environment.How does this ruling affect the fiduciary duty owed by directors to act in the best interests of the corporation?

• A) complicating, as they are now bound to consider these outside interests
• B) inconsequential, as they are not bound to consider those interests
• C) duties to the corporations are confounded by duties of corporate social responsibility
• D) inconsequential, as the duty owed to the corporation is relieved by social responsibility

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Definitions:

Motivate

To provide someone with a reason or incentive to do something.

Sexual Orientation

A person’s sexual identity and the gender(s) to which she or he is attracted.

Legal

Pertains to the system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Ability

The possession of the means or skill to do something or carry out a task effectively.