BU231 Lecture Notes - Lecture 18: Fide, Fiduciary, Due Diligence
Document Summary
Business organizations: sole proprietorship, unincorporated business owned by a single individual. Initial directors are appointed by articles of incorporation, but must hold general meeting of. Shareholders within 18 months of incorporation: subsequent directors are elected by sh, director can sit for 3 years before the need to be re-elected, but can be removed earlier by a. Director torts: duties of care and skill, cannot be negligent standard of the ordinary person, can rely on information provided to them as long as they are not willfully blind. If a director complies in situations of misconduct or negligence, then they can be held personally liable. Insider trading: the use of confidential information relating to a corporation in dealing in its securities. Approval of any amendments made by the directors to the by-laws. Issuing new shares: power lies with the board, majority sh could lose majority position with a new issue.
