Landmark Case: Directors' Duties to Creditors - Peoples Department Stores Inc. (Trustee of) v. Wise
Each OJEN Landmark Case includes a case summary, classroom discussion questions and worksheets that encourage students to explore both the legal and societal importance of the case.
Peoples Department Stores Inc. (Trustee of) v. Wise is a corporate law case concerning the duties of directors of corporations to stakeholders, including shareholders and creditors. The Court ruled that directors must act in the best interests of the corporation, and in doing so, may consider the interests of various affected groups, including shareholders and debentureholders, but are not required to do so. Ultimately, the directors must act in the best interests of the corporation and its operations.
This resource includes explanations and activities related to fiduciary duty and duty of care, and a classroom debate activity on shareholder versus stakeholder primacy.