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The theory you are referring to is likely the "duty of care" or "duty of loyalty" in corporate governance, where shareholders might argue that a company has a responsibility to act in their best interests. If a company's stock prices fall due to perceived mismanagement or failure to disclose important information, shareholders may seek to hold the company's executives or board members liable for damages. This concept relates to potential legal actions under securities law, such as class action lawsuits. However, the specific name of the theory may vary based on context and jurisdiction.

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2w ago

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What is the difference between limited liability and unlimited liability company?

A company can be a limited or unlimited. Limited liability company is one which limits the liability of the members(shareholders) by (1) limited by shares or (2) limited by guarantee. Therefore Company limited by guarantee is a type of limited company which means the liability of the members' is limited by the guarantee given by them while becoming the member. The members have agreed to be liable to the company at the time of liquidation of the company upto an amount for which he is liable and does not have any other liability. Limited by shares means the member (shareholder) is liable for the value of the shares only. Members of the company with unlimited liability has unlimited liability for which they are liable even from their personal property if required.


Why are entrepreneur considered a risk takers?

because entrepreneurs are the only person who is liable in taking care of the business he may establish, whether the business will succeed or not.


What is an example article of a normative economics?

1] ''smokers are liable to die young'' 2]''An increase in minimum wage will lead to inflation'' 3]''vandals of oil pipelines are life span shortners''


Does the buyer have to pay commission to the real estate agency they use?

This is a good question, but the answer is not always clear. Up scale real estate in high priced areas typically charge for almost anything. As long as you do not sign a contract you are not legally liable to pay commission.


What role do entrepreneurs play in the economy?

Enterpreneurs are the risk takers, who take their own money (or borrowed money under which theyre liable) to invest in a business or idea. Without them, individual firms would not exist, in which case they would be run by the state (which is the ideology of a socialist system).

Related Questions

Can a collection attorney collect if you sent them a letter to cease and desist and the original creditor sent you an agreement that you agreed to pay?

If you paid according to an agreement and can prove it, the attorney couldbe liable for damages to you for unfair debt collection ro fraud.


Which of the following is not true of a sole proprietor?

Only the business can be held liable, not the individual.


What is a team race called?

Liable


What does severally liable mean?

The term severally liable means that a person, company, or place is responsible for the upkeep of an establishment, property, or service. If the person, company, or place is not following the responsibilities they are liable which means they can be sued for money.


The judgment given by the jury?

It is called the verdict. In a criminal case it will be Guilty or Not Guilty. In a civil case it will be Liable or Not Liable.


What does severally mean?

The term severally liable means that a person, company, or place is responsible for the upkeep of an establishment, property, or service. If the person, company, or place is not following the responsibilities they are liable which means they can be sued for money.


You crashed into the car in front who is liable?

Typically the person that rear-ends the car is the driver sited for the accident. Usually, for following too closely. It is very rare that the front driver is sited and/or held liable for the accident.


When car owner is liable instead of car driver what is this law called?

Negligent Entrustment


Prior to a 1996 legislative change the only positions pecuniarily liable for erroneous payments within the DoD were which of the following?

certifiy official


What rhymes with reliable?

Liable and flyable. I'm not liable if it's not flyable or not reliable!Plyable, Liable,


How is the word liable used in a sentence?

He is liable for the damages caused to the property.


Will you be liable if you co-sign an automobile loan and your name is not on the title if the automible is in an accident?

Well, you'll be liable for the loan, but that's about it, unless you had something to to with the so-called "accident" (which is rarely accidental, and more often the result of negligence).