Officers are generally not liable to the corporation for secret profits made at the expense of the business of the corporation.

Name: Officers are generally not liable to the corporation for secret profits made at the expense of the business of the corporation.
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Question

Quizplus · Accepted Answer

Officers owe a fiduciary duty to the corporation, which includes a duty of loyalty. Making secret profits at the expense of the corporation breaches this duty, making officers liable to the corporation for those profits.

Officers Are Generally Not Liable to the Corporation for Secret