An officer who breaches the fiduciary duty to the corporation will be:

Question

Quizplus · Accepted Answer

When an officer breaches their fiduciary duty to the corporation, they are required to return any profits obtained through the breach and forfeit the right to compensation during the period of the breach. This is to ensure that the officer does not benefit from their misconduct and to discourage others from engaging in similar behavior. While the officer may also be subject to other remedies or penalties, such as discharge or even legal action, the requirement to return profits and forfeit compensation is a common consequence of breaching the fiduciary duty. Option A is incorrect because it suggests that the officer would not face any consequences, while Option C is too extreme as it suggests that the officer would have to pay back all compensation received, regardless of any wrongdoing or breach of duty. Option D is incorrect as it does not provide a relevant or accurate statement.

An Officer Who Breaches the Fiduciary Duty to the Corporation