Fiduciary Duties

> *Write a short essay, between 400 and 500 words, responding to the
> assignment below. You are expected to use the textbook and outside
> resources to provide accurate and substantive answers to the question.
> Also, be sure to make use of illustrating examples where appropriate.
> Submit your work in APA format.  *
> Jimmy is the CEO of News Corp. His son, Johnny, runs Television Inc.  One
> day Jimmy suggests that Johnny sell Television Inc. to News Corp.   Jimmy
> and Johnny work together to radically inflate the value of Television Inc.
> Jimmy brings a proposal to the Board of Directors to buy Television Inc.
> for $500 million dollars even though the corporation is only worth $2
> million.  The board of directors diligently examines the transaction, but
> due to clever forgeries, the board does not discover the radical inflation
> of the corporation.   Jimmy never discloses his relationship with Johnny.
> The sale goes through, and it is shortly discovered that Television Inc.,
> is practically worthless.
>    – A shareholder sues alleging that Jimmy violated his fiduciary duty of
>    loyalty.
>    – Additionally, the shareholder claims that the directors violated their
>    fiduciary duties of care.
>    – Is the shareholder correct?

Share this paper
Open Whatsapp chat
Can we help you?