Peter Shields was the president and a member of the board of directors of Production Finishing Corporation

Question:

Peter Shields was the president and a member of the board of directors of Production Finishing Corporation for seven years. The company provided steel-polishing services. It did most, if not all, of the polishing work in the Detroit area, except for that of the Ford Motor Company. (Ford did its own polishing.) On a number of occasions, Shields discussed with Ford, on behalf of Production Finishing, the possibility of providing Ford's steel-polishing services. When Shields learned that Ford was discontinuing its polishing operation, he incorporated Flat Rock Metal and submitted a confidential proposal to Ford which provided that he would buy Ford's equipment and provide polishing services to Ford. It was not until he resigned from Production Finishing that he informed the board of directors that he was pursuing the Ford business himself. Production Finishing sued Shields. Has Shields breached his fiduciary duty of loyalty to Production Finishing? Who wins? Production Finishing Corporation v. Shields,158 Mkh.App. 479, 405 N.W.2d 171, Web 1987 Mich. App. Lexis 2379 (Court of Appeals of Michigan)
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Smith and Roberson Business Law

ISBN: 978-0538473637

15th Edition

Authors: Richard A. Mann, Barry S. Roberts

Question Posted: