Etta is a director of Fab Stuff Corporation.Without informing Fab,Etta goes into business with GR8 Things,Inc.,in competition with Fab.Etta is li?able for breach of

Question

Quizplus · Accepted Answer

Etta is breaching the duty of loyalty by going into business with a competitor without informing Fab Stuff Corporation. As a director, Etta has a duty to act in good faith and in the best interest of the corporation, and this duty includes not competing with the corporation without permission. This duty of loyalty is a fundamental duty of directors and is required by law.

Etta Is a Director of Fab Stuff Corporation