Fiduciary Duties of Corporate Shareholders - Explained

The video discusses fiduciary duties in corporations, focusing on the roles of shareholders. It explains that shareholders generally do not owe fiduciary duties unless in closely held corporations, where their roles may require such duties. The video also covers the types of fiduciary duties: duty of care, duty of loyalty, and duty to act in good faith. It highlights the unique situation in statutory close corporations, where shareholders may have more active roles, bypassing some formalities.

What are the three main types of fiduciary duties mentioned in the video?

• Duty of care, duty of loyalty, duty to act in good faith

• Duty of care, duty of honesty, duty to act in good faith

• Duty of loyalty, duty of honesty, duty of care

• Duty of honesty, duty of loyalty, duty to act in good faith

In what type of corporation do shareholders potentially acquire fiduciary duties due to their ownership interest?

• Public corporations

• Closely held corporations

• Non-profit corporations

• Multinational corporations

Why might shareholders in closely held corporations acquire fiduciary duties?

• Due to their role as directors

• Due to their intertwined ownership interest with the corporate entity

• Because they have no interest in the corporation

• Because they are passive owners

What does statutory close corporation status allow shareholders to do?

• Ignore all corporate formalities

• Undertake more activity as owners without following specific procedural rules

• Act as directors without any responsibilities

• Avoid all fiduciary duties

How does statutory close corporation status affect the separation between shareholders and the corporation?

• It increases the separation

• It completely eliminates the separation

• It removes some of the separation

• It has no effect on the separation