Personal Injury Law

Officer and director liability for fiduciary breach

By Pete Burns

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.

Full post as published by Mobile Personal Injury Lawyer on February 17, 2009 (boomark / email).