Lew is a director of Mines, Inc. Using information that is not available to the public, he makes a profit trading in Mines securities. Lew is most likely liable for breach of

Question

Quizplus · Accepted Answer

Lew's action of using insider information to make a profit while trading in Mines securities is a violation of the duty of loyalty that he owes to the company. As a director, Lew has a fiduciary duty to act in the best interests of the company and not use confidential information to gain a personal advantage. This breach of duty is a serious offense and can result in legal action against the director. The business judgment rule and duty of care are not applicable in this scenario as they do not relate to insider trading.

Lew Is a Director of Mines, Inc