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rembrar rembrar
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6 years ago
Fiduciary Duty of Directors. In 1978, David Brandt and Dean Somerville incorporated Posilock Puller, Inc (PPI), to make and market bearing pullers. Each received half of the stock. Initially operating out of McHenry, North Dakota, PPI moved to Cooperstown, North Dakota, in 1984 into a building owned by Somerville. After the move, Brandt's participation in PPI diminished, and Somerville's increased. In 1998, Somerville formed PL MFG as his own business to make components for the bearing pullers and sell the parts to PPI. The start-up costs included a 450,000 loan from Sheyenne Valley Electric Cooperative. PPI executed the loan documents and indorsed the check. The proceeds were deposited into an account for PL MFG, which did not sign a promissory note payable to PPI until 2000. When Brandt learned of PL MFG and the loan, he filed a suit in a North Dakota state court against Somerville, alleging in part a breach of fiduciary duty. What fiduciary duty does a director owe to his or her corporation? What does this duty require? Should the court hold Somerville liable? Why or why not?
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ktrobekktrobek
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rembrar Author
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6 years ago
Thanks
ealvino1610
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Yesterday
Thank you, thank you, thank you!
gma_of_7
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2 hours ago
You make an excellent tutor!
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