Louiseis a director for Icy Ices,Inc.Louise is also a director for Creamy Creams,Inc.When Icy Ices enters into a contract with Creamy Creams,Louise

Question

Quizplus · Accepted Answer

Louise has a conflict of interest as a director for both companies involved in the contract. Therefore, she must disclose the conflict of interest and abstain from voting on the proposed transaction to avoid any potential legal issues for both companies. She does not necessarily have to resign from either or both boards, as long as she takes appropriate measures to ethically handle the conflict of interest.

Louiseis a Director for Icy Ices,Inc