Practice question
A controlling director personally leads confidential negotiations that will materially affect share value. Before buying a minority owner's shares, the director conceals the negotiations and the director's own identity. Does buying through an agent necessarily remove the disclosure problem?
- Yes, an agent always eliminates fiduciary duties
- Yes, concealment supplies consent
- Yes, share ownership permits any deception
- No, the intermediary does not cure concealment under the stated special circumstances
- No, because directors may never buy shares
Legal references
- Strong v Repide,213US419,May3 1909,main opinion: https://www.govinfo.gov/content/pkg/USREPORTS-213/pdf/USREPORTS-213-419.pdf ; full opinion transcription: https://supreme.justia.com/cases/federal/us/213/419/
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