Fact Pattern 20-1
Tonya is the president of Big Corporation. Big Corporation is looking for land on which to build a new facility. Tonya locates suitable land, but purchases it for herself with plans to sell it at a profit at a later date. Rick, the majority shareholder of Big Corporation hears about Tonya's purchase and complains to her about it. She tells Rick that she viewed and purchased the land on her own time and that she did not breach any duties owed to the corporation. Rick tells her that she should reconsider and that he plans to discuss the matter with the rest of the board.
-Refer to Fact Pattern 20-1.Which of the following is a right of the corporation if it is determined that an officer wrongfully takes an opportunity belonging to the corporation?

Question

Quizplus · Accepted Answer

If it is determined that an officer wrongfully takes an opportunity belonging to the corporation, the corporation has the right to impose a constructive trust on the profits earned from the opportunity. This means that the officer must hold the profits in trust for the corporation and not use them for personal gain. This is a common remedy in cases of breach of fiduciary duty. Absolute trust, federal and state-imposed penalties are not applicable in this situation.

Fact Pattern 20-1 Tonya Is the President of Big Corporation. Big Corporation Is