Originally Posted by
blackcap
His obligation is to the company and not the shareholders. If he was put in an untenable position by the other directors (ie they could not agree to a course of action) then what was he supposed to have done? He cannot really "stick with it and do his job" because his job is not able to be done. Sort of caught between a rock and a hard place. Go public is not an option either as that does not help the company, you cannot force other directors to do as you want, so as Percy says, there is no other action but to resign, and this should be enough warning to shareholders without actually coming out and saying that things are not as they should be.