AFM231 Lecture Notes - Lecture 17: Fiduciary, Legal Personality, Sole Proprietorship
Document Summary
Lecture 17: organizing the business and corporate governance. Corona, a junior mining company, disclosed confidential geological findings to lac during early negotiations for a joint venture. Lac used the confidential information to purchase adjoining property. Corona argued that lac violated its fiduciary duty and stole" an opportunity that belonged to corona. Scc concluded a fiduciary duty was owed even in absence of explicit confidentiality instructions reasonable expectation of confidence. Business law in practice e. g. p. 322: this is a completely realistic example. Not all of you are going to have a daddy who can put up ,000. But you may well have a family member or friend who will lend you some money. 14 is the risk exposure you and anyone associated with your business faces. The vast majority of new businesses start as sole proprietorships. From a purely practical (not legal) perspective, it may make little difference to you, which form you adopt.