GMGT 3300 Chapter Notes - Chapter 9: Fiduciary

• School: University of Manitoba
• Department: General Management
• Course: GMGT 3300
• Professor: Ian A.Restall

Document Summary

When can the corporate veil be pierced? (sue the people behind the scenes) Bri-x --> represented they had found gold, therefore people bought shares, but there was never a gold find and now all the money is gone. > e. g. exploration of precious metals (patten vs. yukon consolidated gold) --> mr. t pushes shares for the start of pubic trading of yukon consolidated gold, therefore he has fiduciary duties. Mr. t becomes aware of a gold find on a piece of land. He decides he wants to own this land, so he starts his own corporation and tells his head officer to go and buy that land. Then yukon consolidated buys the land a high price. Later they find out mr. t owned the corp. that bought the land, and used it as a shield for fraud. Only sometimes can you pierce the veil (the book mentions the other times, know them) e. g.