If a Director Fails in His Duty to the Corporation

question 93

Essay

If a director fails in his duty to the corporation, what rights does a minority shareholder have to hold him accountable?

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Definitions:

Market Value Per Share

The current price at which a single share of a company's stock is bought or sold in the financial markets.

Earnings Per Share

Earnings Per Share (EPS) is a measure used to indicate the profitability of a company, calculated as the company's net income divided by the number of outstanding shares of its common stock.

Par Preferred Stock

The value assigned to preferred stock for accounting purposes, not necessarily its market value.

Common Share

A type of equity security that represents ownership in a corporation, giving holders voting rights and dividends.