A shareholder has an obligation not to compete with the corporation.

Name: A shareholder has an obligation not to compete with the corporation.
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Question

Quizplus · Accepted Answer

Shareholders, as owners of shares in a corporation, do not have inherent obligations not to compete with the corporation unless specifically agreed upon, such as in a shareholder agreement. Directors and officers may have fiduciary duties that restrict competition, but shareholders do not have these obligations by virtue of owning shares.

A Shareholder Has an Obligation Not to Compete with the Corporation