Equitable Review by Courts Flashcards
1
Q
May corporate directors take action solely for the purpose of obstructing shareholder objectives?
A
No. Directors of a corporation are bound to act in the best interest of the shareholders. They may not take steps designed to perpetuate their own power at shareholder expense, even if the maneuvers used are technically permitted by statute. Shareholder elections are particularly important events and may not be manipulated by directors for their personal gain.
