Ethan Got Together with a Number of Friends Who All

question 22

Multiple Choice

Ethan got together with a number of friends who all sat on the board of directors of a corporation. They personally disliked Stephen, a minority shareholder with a bad attitude. A new proposal was being put to the board. While they knew that this was not a measure that was in the best interests of the corporation, they also knew it would seriously weaken Stephen's financial position. Accordingly, they voted in favour of it. Which of the following is true?

• A) The directors have breached their fiduciary duty to act in the best interests of the shareholders.
• B) The directors have breached their fiduciary duty to act in the best interests of the corporation.
• C) The directors have acted inappropriately, but because Stephen is a minority shareholder, their conduct is not actionable.
• D) The directors have discretion to act how they see fit, even if it is not generally viewed as professional.
• E) The directors have breached the Canadian Code of Professional Conduct.

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Definitions:

Loneliness

A complex and usually unpleasant emotional response to isolation or lack of companionship.

Regionalist

Refers to an artist or writer that emphasizes the themes, characteristics, and culture of a specific geographic area or region in their work.

Thomas Hart Benton

An American painter and muralist of the early 20th century, known for his murals and works depicting scenes of American life in a style associated with the Regionalist movement.

Missouri

A state located in the Midwestern United States, known for its diverse geography ranging from the Ozark Mountains to the Mississippi River plains.