2.Self-Centered President. Tina is the new president of "We Manage You," a corporation set up to manage physician practices. Tina has never been very concerned with minority shareholders because she does not believe that they have any influence over the company because they cannot even elect a director. She is told, however, that the corporation has a practice of cumulative voting. An election is coming up in which 10 directors will be elected. Minority shareholders own 2,000 shares while majority shareholders own 8,000 shares. Tina tells her vice president, George, that she wants to ignore minority shareholders and focus her interests on majority shareholders and the directors. She also tells George that she wants to be particularly conscientious toward directors because the directors appoint officers, and she does not believe that she owes any actual duties to shareholders. She further orders George to destroy some documents subpoenaed in a criminal investigation against the company for illegal tax evasion. When George protests, Tina tells him not to worry because officers cannot be held responsible for criminal actions so long as the actions are done as part of the officer'sduties. She explains to him that only the corporation can be charged with liability in such cases. Is Tina accurate that she owes no duties to shareholders?

Multiple Choice

• She is partially accurate. She owes both a duty of care and a duty of loyalty to minority shareholders, but no duties to majority shareholders because the law assumes that they have the power to protect their own interests.
• No, she is inaccurate and owes both a duty of care and a duty of loyalty to shareholders.
• No, she is inaccurate because she owes a duty of loyalty to shareholders although she owes no other duties.
• No, she is inaccurate because she owes a duty of care to shareholders although she owes no other duties.
• Yes, she is accurate because it is the directors who owe a duty to shareholders.