Is there a duty that is owed to shareholders as well as the company?
British Columbia, Canada
The following excerpt is from Lomak Industries Corp. v. Bull, Housser & Tupper, 1995 CanLII 2332 (BC SC):
15 It appears to me that if the theory of the case that is advanced on the proposed pleadings were sound, then in virtually each and every case where professional services are performed for a closely held company, a duty giving rise to liability in the event of a breach would be owed to the shareholders as well as the company despite the rule in Foss v. Harbottle that has stood for more than 100 years. Conclusion
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