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Social Media & Child Safety, Elon's Paycheck, and Guest Conor Dougherty
Pivot
Fiduciaries' Obligations and Delaware Incorporation
The term 'fiduciary' denotes the responsibility to represent the interests of others, especially when they are unable to do so themselves. Boards of companies are expected to act as fiduciaries for all stakeholders, but some may fail to fulfill this obligation. When a public company sells shares to retail investors, Delaware law requires the board to live up to certain obligations. This may lead to the need for appointing new board members who are willing to serve on committees and carry out their fiduciary duty, even in the face of potential resistance.
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