Breach of Fiduciary Relationship: California Corporation Law

Written by Adam Peck Category: Injury Law January 14th, 2013 1 min read

The directors may be held liable in connection with a buy-sell agreement for failing to act in the best interests of the corporation.

Liability would be based upon breach of fiduciary duty owed by the directors of the corporation.

For example, payment of an excessive price to a withdrawing shareholder to maintain the directors’ management position may constitute a breach of the directors’ fiduciary duty to the corporation. The sale of shares to the corporation by a controlling shareholder or a member of a control group at an excessive price to transfer control, or to permit a control group to remain in control, may cause the selling shareholder to be liable to the corporation for the premium paid for the shares.

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.