Asked by Kathryn Murphy on Jul 09, 2024
Verified
If a director commits a breach of fiduciary duty, the shareholders have the inherent power to remove the director from office by a majority vote.
Breach Of Fiduciary Duty
The failure of a person in a position of trust to act in the best interests of those they serve.
Shareholders
Individuals or entities that own shares in a corporation, giving them ownership interests and possibly rights to dividends and voting in company matters.
- Understand the methods and legal guidelines for selecting and discharging directors.
Verified Answer
RB
Regine BarcelonJul 13, 2024
Final Answer :
True
Explanation :
Shareholders generally have the power to remove directors from office for breaches of fiduciary duty or other reasons, typically by a majority vote, as outlined in the corporation's bylaws or the applicable corporate laws.
Learning Objectives
- Understand the methods and legal guidelines for selecting and discharging directors.