Emma is a director of Fab Styles Corporation. Without informing Fab,Emma goes into business with GR8 Trends,Inc.,in competition with Fab. Emma is li-able for breach of

Question

Quizplus · Accepted Answer

Emma is in breach of her duty of loyalty as a director of Fab Styles Corporation because she is engaging in competition with her own company without informing them. A director has a fiduciary duty to act in the best interests of the corporation and not to engage in any conduct that would put her personal interests ahead of those of the corporation. Emma’s actions represent a clear conflict of interest and breach of the duty of loyalty.

Emma Is a Director of Fab Styles Corporation