The Remedy for a Director's Breach of Fiduciary Duty Is

question 17

Multiple Choice

The remedy for a director's breach of fiduciary duty is:

• A) a suit in equity by the corporation.
• B) a derivative suit instituted by a shareholder to require the director to pay to the corporation the profits obtained through the breach.
• C) a class action suit by the shareholders.
• D) Not only  a suit in equity by the corporation but also  a derivative suit instituted by a shareholder to require the director to pay to the corporation the profits obtained through the breach.

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Definitions:

Equity

The concept of fairness in economics, typically referring to ownership interest in a company or property, or the idea of justice in distribution of wealth or resources.

Command Economy

An economic system where the government controls the major aspects of production, distribution, and exchange of goods and services.

Central Planning

An economic system where all major production, investment, and distribution decisions are made by a central authority, typically the government.

Free Enterprise

An economic system in which private businesses operate in competition and largely free of state control, with minimal government intervention.