Lewis is a director of Mines & Refineries, Inc. Using information that is not available to the public, Lewis makes a profit trading in Mines & Refineries stock. Lewis is most likely liable for breach of

Question

Lewis is a director of Mines & Refineries, Inc. Using information that is not available to the public, Lewis makes a profit trading in Mines & Refineries stock. Lewis is most likely liable for breach of​

Quizplus · Accepted Answer

The duty of loyalty requires directors to act in good faith and in the best interests of the company and its shareholders. Lewis made a profit using non-public information, which is a violation of this duty. Therefore, he is most likely liable for breach of duty of loyalty. The business judgment rule and duty of care are not applicable in this scenario.

Lewis Is a Director of Mines & Refineries, Inc