A manager who first offers an opportunity to disinterested directors or shareholders who turn it down has the right to take advantage of the opportunity herself.

Question

Quizplus · Accepted Answer

This principle is known as the "Corporate Opportunity Doctrine" and allows the manager to take advantage of an opportunity that was properly offered to the company, but declined by disinterested parties. However, the manager must ensure that she is not using company resources or information for personal gain and that the opportunity is truly outside the scope of the company's business.

A Manager Who First Offers an Opportunity to Disinterested Directors