A Short & Happy Guide to Business Organizations by David G. Epstein

Author:David G. Epstein
Language: eng
Format: epub
ISBN: 9781647083731
Publisher: West Academic Publishing
Published: 2020-02-15T00:00:00+00:00

10.What Facts Suggest That a Director Has Breached Her Duty of Loyalty to the Corporation?

Look for a fact pattern in which a director uses her position as a director to gain some individual monetary gain or other personal advantage. More specifically, watch for either (1) the director’s 126

usurping a “corporate opportunity” [e.g., BBC, a corporation, owns and operates a restaurant that needs to expand. S, the owner of land adjacent to the restaurant, contacts D because D is a director of BBC and offers to sell BBC the land that is adjacent to BBC’s restaurant. D buys the land for D’s own real estate development company, D Realty Inc., without ever mentioning the opportunity to BBC’s other directors] or (2) the corporation’s entering into an “interested director transaction” [e.g., BBC corporation buys land from D Realty, Inc., a corporation owned by one of its directors at an above market price] or (3) (much less likely) a director’s competing with the corporation [e.g., D, a director of the BBC corporation, opens D’s own restaurant in the same neighborhood as BBC’s restaurant].

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.