Lee, a Former Head of a Venture Capital Firm, Sat

Lee, a former head of a venture capital firm, sat on the board of directors of Angel Enterprises Ltd., a broadly held corporation. During a board meeting, she recommended that the corporation invest in a new technology start-up. Lee failed to mention that she owned shares in this new tech corporation. When the prospect of investing was put to the board, Lee voted in favour it. Read each of the following statements separately and choose the true statement.

A) Lee must account for any profit made because she failed to disclose her interest and voted on the matter.
B) Lee does not have to disclose her interest in the contract, as long as her director's agreement relieves her of her fiduciary duties.
C) Lee must disclose her interest in a contract before the board, but she is entitled to vote for it.
D) Lee has breached her fiduciary duty, but she does not need to give up any profits as long as the investment turns out to have been sound.
E) Lee does not owe a fiduciary obligation to the company, only to individual shareholders.