Font Size: a A A

Study On The Fiduciary Duty Of Controlling Shareholders Of Limited Company

Posted on:2008-10-16Degree:MasterType:Thesis
Country:ChinaCandidate:X L LiangFull Text:PDF
Abstract/Summary:PDF Full Text Request
Fiduciary duty or trust duty originates from the trust theory of British-American laws, later applied to company laws. Therefore, fiduciary duty of contronlling shareholders becomes a very impoetant part of company laws. As for the content of the fiduciary duty, there is no influential verdict in academics. It is generally believed that fiduciary duty indues the duty of care and the duty of loyalty.However, there is disagreement in whether mainland laws or the British-American laws on the relationship of the two.But I reckon that, the duty of care is independent on the duty of loyalty,both of which belong to the boundary of fiduciary duty.The application of fiduciary duty into company laws are first aimed at the board. Then what is the difference between the fiduciary duty of contronlling shareholders and that of the board? What's the concrete content of fiduciary duty of the shareholders? What about the object of fiduciary duty of the controlling shareholders? The essay will try to solve these questions.Though the new company laws specified the similar content to that of the controlling shareholders,but it cannot be seen as mature, moreover, fiduciary duty of the sharehloders is only an abtract content and isn't operative. Therefore, we shold make new laws to ensure the loss,which caused by shareholdersfor for violating the fiduciary duty to other entities, of whom can be compensated. We should introduce punitive compensation and burden of persuasion to make sure that shareholders perform their duty and influences can be exerted on them. It is reckoned that by the current shareholder suit system that the violation of fiduciary duty by controlling shareholders canbe effectively prevented.
Keywords/Search Tags:controling shareholders, fiduciary duty, limited company, burden of persuasion, punitive compensatio
PDF Full Text Request
Related items