Fiduciary Duties, writing homework help

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timer Asked: Aug 23rd, 2017
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Question Description

Business Law I

Fiduciary Duties

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?

The requirements below must be met for your paper to be accepted and graded:

  • Write between 500 – 750 words (approximately 2 – 3 pages) using Microsoft Word.
  • Attempt APA style, see example below.
  • Use font size 12 and 1” margins.
  • Include cover page and reference page.
  • At least 60% of your paper must be original content/writing.
  • No more than 40% of your content/information may come from references.
  • Use at least two references from outside the course material, preferably from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the two reference requirement.

Tutor Answer

Msharon
School: Rice University

Attached.

Running head: FIDUCIARY DUTIES

1

Fiduciary Duties

FIDUCIARY DUTIES

2

Introduction
A common law fiduciary duty exists when there is a relationship that one person will act
on behalf or for the benefit of the other in the circumstance that comprises of confidence and trust.
The part designated as the fiduciary owes an absolute legal duty to the principal and strict care is
undertaken to ensure that there is no conflict between the fiduciary and the principal (Rodrigues,
2009). Ideally, no profit is to make from the fiduciary relationship unless it is only granted at the
beginning of the agreement. The most common fiduciaries duties that can arise in a corporation
comprise of duty of care, the duty of loyalty, account and full disclosure. This paper address the
fiduciaries duties, the duty of loyalt...

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Review

Anonymous
Thanks, good work

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