A director violates the corporate opportunity doctrine if he or she competes with the corporation,unless the disinterested directors approve of the director's actions.

Question

Quizplus · Accepted Answer

The statement is true. The corporate opportunity doctrine requires directors to act in the best interest of the corporation and not to take for themselves any business opportunities that rightfully belong to the corporation without obtaining approval from the disinterested members of the board of directors. Competing with the corporation without such approval would be a violation of this doctrine.

A Director Violates the Corporate Opportunity Doctrine If He or She