Study on the Right Boundary of Preferred Stock Contract from the Perspective of Fiduciary Duty
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The characteristics of the integration of equity and creditor’ s rights in the Preferred Stock Contract Make The Interest Conflict Between The Preferred Stock shareholders and common ones more complicated. In these conflict, how to define the right boundary of the preferred stock contract in a rational way is particularly important. In order to define the above issue, this paper studies the right boundary of preferred stock contract from the perspective of fiduciary duty. Based on the angle of fiduciary duty, some actions like establishing the judicial review standard of fiduciary duty, paying attention to the important role of procedural justice, and pursuing procedural justice at the same time, as well as taking substantive justice as the standard to determine the right boundary of preferred stock can effectively define the right boundary of preferred stock contract.
Preferred stock contract; Fiduciary duty; Procedural justice; Substantial justice