A director who personally competes with the corporation he or she is employed in is said to have breached the duty of obedience.

Name: A director who personally competes with the corporation he or she is employed in is said to have breached the duty of obedience.
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Question

Quizplus · Accepted Answer

The correct term is the duty of loyalty, not the duty of obedience. The duty of loyalty requires directors to act in the best interests of the corporation and not to compete with it or usurp corporate opportunities for personal gain.

A Director Who Personally Competes with the Corporation He or She