FIDUCIARY INTERESTS IN COMPANIES
TO THE EDITOR. Sir, —It may not be generally known, but I think it ought to be in these times, when so many people are now dealing and selling shares in joint stock companies, that, according to the law of England —and I suppose it is the same in this Dominion —directors and managers of companies who are supposed to possess an inner knowledge of their affairs should nofc take an unfair advantage of any of their shareholders by buying shares at less than their current market value, or to withhold from the seller any knowledge he may have acquired that is likely to affect that value. For a director to do so is not only an infringement of the moral law, but the seller who has been deprived of what the law considers Ins just rights can demand and enforce a return of the shares purchased by the director or manager. The assumption is that the director or manager lias been paid for protecting the seller’s interests, and has not done so, and must suffer accordingly.—l am, etc., A Silent Sufferer.
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Otago Daily Times, Issue 22258, 10 May 1934, Page 15
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186FIDUCIARY INTERESTS IN COMPANIES Otago Daily Times, Issue 22258, 10 May 1934, Page 15
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