Boards of directors owe fiduciary duties of care and loyalty to common stockholders. Of course, many investors in startups take preferred stock, not common, which makes the question posed by this article especially acute in the startup context--what are a board of directors duties to preferred shareholders? The article looks to the leading Delaware case on the matter and notes its implications to corporations with outstanding preferred stock.
- Summary by FizzLaw Team
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Duties to Preferred Shareholders