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Pete Burns
Pete Burns
Attorney • (800) 574-4332

Officer and director liability for fiduciary breach

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The pendulum is swinging toward reasonable accountability in the business world. News flash: Officers have fiduciary duties to their companies! The lack of regulation that lead to our disastrous financial meltdown is beginning to cause a sober look at liability rules. A good case in point is the recent ruling by the Delaware Supreme Court that officers have fiduciary duties to their companies. http://courts.delaware.gov/opinions/(j2glxx45d0ewqp45ejdoarfi)/download.aspx?ID=116710

That such a holding would come as a surprise is the really big news. Why in the name of heaven wouldn’t a corporate office owe a fiduciary duty to the company? Hopefully we will see more courts recognizing that the stockholders – not the corporate executives – are the ones in need of protection.