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 startup. Lee failed to mention that she owned shares in this new tech company. 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 disclose her interest in a contract before the board, but she is entitled to vote for it.
B) Lee does not owe a fiduciary obligation to the company, only to individual shareholders.
C) 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.
D) Lee must account for any profit made because she failed to disclose her interest and voted on the matter.
E) Lee does not have to disclose her interest in the contract, as long as her director's agreement relieves
Her of her fiduciary duties.