BUSA 364 Lecture Notes - Lecture 7: Fiduciary, Absolute Liability, Debenture
14 Jun 2019
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Format is similar to the examples posted. Section 121 of cbca fiduciary duty of directors and officers. Retail company called wise stores ltd. (privately owned company owned by the wise brothers the sole shareholders, and appointed themselves as directors of this company) Wise acquired another company called peoples department stores (typical 100% acquisition economies of scale: same industry big retail stores, predecessors of walmart and target. Wise brothers appointed themselves as directors of peoples. 25% comes from foreign suppliers: turnaround is not successful peoples goes bankrupt to the trustee (e&y, north american suppliers are the creditors that are owed money from peoples. Trustee needs to act in the benefit of the creditors: files a claim against directors for having breached their fiduciary duty and their lack of skill (on behalf of the suppliers) Supreme court of canada: section 121 (b) no exercise of care, diligence, and skill.
