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No Power To Be Disloyal (Or, How Not To Write A Loyalty Opinion) , Val Ricks
No Power To Be Disloyal (Or, How Not To Write A Loyalty Opinion) , Val Ricks
The Journal of Business, Entrepreneurship & the Law
It is the thesis of this paper that no privilege to act disloyally exists: that a power to act never trumps the duty of loyalty. My method is to discuss three cases in which the privilege or power to act appears to receive judicial support. The paper shows why this strategy does not work. Such assertions have no support in logic (and usually not in law), provide a slippery slope at the bottom of which the duty of loyalty ceases to exist, often result in a decision being internally inconsistent, and fail to stand the test of time. I will …