159. Power of directors to have regard to interest of its employees, members and rulings of Securities Industry Council Flashcards
1
Q
- Power of directors to have regard to interest of its employees, members and rulings of Securities Industry Council
A
General overview
[159.01] Although directors owe fiduciary duties to the corporation alone and not to other stakeholders such as its members, creditors and employees, this section provides that directors, in exercising their powers, are entitled to have regard to the interests of the company’s employees, as well as its members. However, it is clear from case law that this section does not give any cause of action to the employees or creditors to sue the directors for breach of their fiduciary duty.
