The "corporate opportunity" doctrine states that managers may take an opportunity for themselves if they offer the opportunity first to the corporation and the corporation rejects the opportunity.

Question

Quizplus · Accepted Answer

The corporate opportunity doctrine states that corporate managers cannot take a corporate business opportunity for themselves if they know that the corporation would be interested in that opportunity as well. Before taking such an opportunity, a manager must first offer it to the corporation by informing other managers and shareholders. If the corporation rejects the opportunity, then the manager is free to take that opportunity.

The "Corporate Opportunity" Doctrine States That Managers May Take an Opportunity