BU231 Chapter Notes - Chapter 26: Chief Financial Officer, Financial Statement, Fiduciary
Document Summary
Directors: most important powers of the directors: Issuing shares they determine when and to who to issue shares to. Officers: officers may be removed by the directors, they exercise tremendous power and are subject to the same duties as directors. 12/5/16: business judgement rule: courts will defer to the business decisions of directors and officers provided they are arrived at using an appropriate degree of prudence and diligence. If a director is responsible for acquiring an item or property for the corporation, but gets it for themselves instead, they are also in breach of duty. If a director receives information in their capacity as director of a corporation, they must give the company the first chance of acquiring an interest in the item: director cannot carry on business with a competing corporation. Insider trading: the use of confidential information relating to a corporation in dealing in its securities.
