A shareholder who is not a director can operate a business that competes with the business of the company in which she or he is a shareholder.

Question

Quizplus · Accepted Answer

As a shareholder, one only owns a portion of the company and does not have any obligations or restrictions on running a business that competes with the company. However, if the shareholder is also a director, there may be conflicts of interest and legal obligations to consider.

A Shareholder Who Is Not a Director Can Operate a Business