A director who usurps a corporate opportunity:

Question

Quizplus · Accepted Answer

As a fiduciary to the corporation, a director has a duty to act in the best interests of the corporation and not use his/her position for personal gain. If the director usurps a corporate opportunity, he/she must account for the profits earned to the corporation. This is known as the corporate opportunity doctrine. Disclosure of the opportunity in advance would not absolve the director of this duty. Violation of this duty is a breach of the director's fiduciary duty, and does not necessarily violate the business judgment rule.

A Director Who Usurps a Corporate Opportunity