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The notion that a company is owned by shareholders is the basis of the agency theory that equates the relationship between shareholders and directors with

"The notion that a company is owned by shareholders is the basis of the agency theory that equates the relationship between shareholders and directors with the principal and agent relationship, the shareholders being the principals and the directors being agents who have a duty to act in the best interests of the shareholders as a body." With the aid of case law, critique the legal soundness of this proposition

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