Running head: SHAREHOLDERS VS ROGER 1
Indhira Vasquez
April 25, 2017
Business Law & Ethics
BUL 3130 – 447000
Case Study #4
Shareholders
Vs
Roger
SHAREHOLDERS VS ROGER 2
Issue
Due to the loss of money, an unnamed shareholder filed a lawsuit against Roger claiming
he violated his duty to the corporation by convincing the board to build and market the largest
sport utility vehicle in today’s market. This case study will discuss Roger’s duties as a director
and any defenses he has to the lawsuit.
Rule
A board of directors within a corporation has the authority over corporate affairs, such as
a board of directors meeting to decide on the fate of designing a new sport utility vehicle. The
law here in the United States authorizes shareholders of a company to sue corporate directors for
wrongful acts that harm the corporation or the value of its shares. These shares represent
ownership stakes in a corporation and when directors undertake actions that harm the
