Article

Directors’ Fiduciary Obligations: Is the Shareholder an Appropriate Beneficiary?

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Abstract

‘Corporate governance is the system by which companies are directed and controlled.’ One underutilised aspect of corporate governance is the fiduciary obligation. Given that the balance between corporate governance and commercial activity is of concern both in Australia and overseas, the value of developing a broader principle of fiduciary obligation between directors and shareholders should be considered along with whether it can contribute to achieving this balance. This article will discuss the current use of the fiduciary obligation within the corporate context, and its potential for future development and application within corporate governance.

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