Agent’s Duty to Principal. William and Maxine Miller were shareholders of Claimsco International, Inc. They filed a suit against the other shareholder, Michael Haris and keneeth Hooxie, an the accountant who worked for all of them- John Verchota. Among other things, the Millers alleged that Verchota had breached a duty that he owed them. They claimed that harris’s instruction, Verchota had taken various actions that placed them at a disadvantage to the other shareholders. Verchota had allegedly adjusted Claims co’s book to maximize the millers financial liabilities, for instance, had falsely reported distributions of income to them without actually transferring that income. Which duty are the Millers referring to? If the allegations can be proved, did Verchota breach this duty? Explain. (see duties of agents and principals)
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