Is Tina Accurate That She Owes No Duties to Shareholders

question 19

Multiple Choice

Is Tina accurate that she owes no duties to shareholders?

• A) Yes, she is accurate because it is the directors who owe duties to shareholders.
• B) No, she is inaccurate because she owes a duty of care to shareholders although she owes no other duties.
• C) No, she is inaccurate because she owes a duty of loyalty to shareholders although she owes no other duties.
• D) No, she is inaccurate because she owes both a duty of care and a duty of loyalty to shareholders.
• E) She is partially accurate. She owes both a duty of care and a duty of loyalty to minority shareholders, but no duties to majority shareholders because the law assumes that they have the power to protect their own interests.