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.
Cumberland School of Law, Cum Laude graduate Peter F. Burns practice areas include business litigation will contests, medical malpractice, legal malpractice, and other matters of complex civil litigation. Mr. Burns is licensed to practice before the United States Supreme Court and is a Certified Alabama Mediator; Board-Certified Civil Trial Advocate, National Board of Trial Advocacy, and a member of national and state Legal associations.