A corporation generally may avoid a transaction because of a director's secret disqualification,such as a conflict of interest.

Question

Quizplus · Accepted Answer

This is true. Directors have a fiduciary duty to act in the best interests of the corporation and avoid conflicts of interest. If a director has a secret disqualification that could impact their ability to fulfill this duty, the corporation can avoid a transaction to protect itself.

A Corporation Generally May Avoid a Transaction Because of a Director's