Directors are prevented from ever having financial dealings with the corporations they serve.

Question

Quizplus · Accepted Answer

While it is generally considered a conflict of interest for directors to have financial dealings with the corporations they serve, there may be certain circumstances where it is allowed and disclosed properly. However, in general, directors should avoid any financial transactions with the corporations they serve to preserve their independence and avoid any appearance of impropriety.

Directors Are Prevented from Ever Having Financial Dealings with the Corporations