A manager who has engaged in self-dealing has violated the duty of loyalty to the corporation,unless the self-dealing was entirely fair to the corporation.

Question

Quizplus · Accepted Answer

The duty of loyalty requires managers to act in the best interest of the corporation and avoid conflicts of interest. Self-dealing, where a manager puts their own interests above those of the corporation, is a clear violation of this duty. However, if the self-dealing transaction is entirely fair to the corporation, then it may not be considered a violation of the duty of loyalty.

A Manager Who Has Engaged in Self-Dealing Has Violated the Duty