Three directors of a courier business who became aware of a business opportunity resigned and formed their own corporation in order to take advantage of the opportunity.The opportunity turned out to be very lucrative.Which of the following remedies is a court most likely to order in this situation?

Question

Quizplus · Accepted Answer

An accounting of profits is the most likely remedy a court would order in this situation because the directors breached their fiduciary duty to their former company by taking a business opportunity for themselves. This remedy would require them to account for and possibly surrender the profits made from the opportunity they exploited.

Three Directors of a Courier Business Who Became Aware of a Business