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position of minoirities. Directors themselves can control the company with extensive powers. They may act in the interests either as single minority or group of
position of minoirities. Directors themselves can control the company with extensive powers. They may act in the interests either as single minority or group of minority shareholders because in our model, if you act against the interests of the majority, then the majority will kick u out and replace you. In this situation, lets take for eg, the classic breach of directors duties which is to take that opportunity which belongs to the company. In that situation, there is a clear breach of directors duties. It is one of those clearest breaches we have. But if the majority shareholders are also those directors, they can simply say fine we approve it. The company harmed , minority shareholders are indirectly harmed. But we dont have any remedy so we have to find somewhere of solving that
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