Eve is a director of Fab Style Corporation. Without informing Fab, Eve goes into business with Gro Trend, Inc., in competition with Fab. Eve is most likely liable for breach of

Question

Quizplus · Accepted Answer

Directors owe a duty of loyalty to the corporation, which requires them to act in the best interests of the corporation and not enter into competing business activities without prior approval from the corporation. Eve's decision to go into business with a competitor without informing Fab is a clear breach of this duty of loyalty. Therefore, Eve is most likely liable for breach of duty of loyalty.

Eve Is a Director of Fab Style Corporation