Shareholder deadlocks: Complications for directors
Directors should act methodically, record valid reasons for their business decisions, and take legal advice in cases of doubt
MY ARTICLE last week, "Boardroom dramas: shareholders in deadlock" (BT, April 6, 2015) underscored the primary duty of directors to fulfil their fiduciary duties to the company honestly, reasonably, and diligently over any other duty to opposing groups of shareholders.
In this article, I would like to cast the spotlight on the complications for directors arising from shareholder deadlock situations. There are three common complications:
The director as shareholder
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Singapore shares climb at Friday’s open; STI up 0.2%
A timeline of DBS’ recent banking glitches
Keppel Infrastructure Trust posts 29.1% lower Q1 distributable income
Elite Commercial Reit’s Q1 DPU down 21.2% to £0.0067
Airbus called for compensation to take on money-losing Spirit operations: sources
Olam outbids Dreyfus’ sweetened deal for Australia’s Namoi, raises offer to A$0.66 per share