Fiduciary Duties of Parents and Subs | Brian JM Quinn | November 15, 2013

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Fiduciary Duties of Parents and Subs

Original Creator: Brian JM Quinn Current Version: Brian JM Quinn Show/Hide

Stockholders do not normally have fiduciary duties with respect to other stockholders. This principle makes sense for a number of reasons. Stockholders with small stakes have no ability to influence the board of directors and therefore should be free from restrictions in their dealings with other stockholders.

However, this principle is subject to an exception. When stockholders can, through their ownership position influence and control the direction of the corporation, then those stockholders have fiduciary obligations with respect to minority stockholders.

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April 13, 2014

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