Officers have a fiduciary obligation not to make any secret financial gain at the expense of the corporation.

Question

Quizplus · Accepted Answer

Officers have a legal duty to act in good faith and in the best interests of the corporation, and this duty includes avoiding any conflicts of interest or situations that could result in personal financial gain at the expense of the corporation. This is known as the duty of loyalty, which is a foundational element of corporate governance.

Officers Have a Fiduciary Obligation Not to Make Any Secret