A manager who has engaged in self-dealing has violated the duty of loyalty to the corporation,unless the self-dealing also benefitted the corporation.

Question

Quizplus · Accepted Answer

The duty of loyalty requires managers to act in the best interest of the corporation and not to use their position to benefit themselves. If a manager engages in self-dealing that does not benefit the corporation, they have violated their duty of loyalty. However, if the self-dealing also benefits the corporation, it may not be a violation of the duty of loyalty.

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