The Freestanding Company Limited is the owner of a number of commercial buildings in a large Ontario city. One of the directors, Denise, suggested that the corporation purchase a large apartment building. Another director, Zaida, was the owner of a one-third interest in the building. Zaida has a duty to disclose her interest in the apartment building and must refrain from voting on the proposal.

Question

Quizplus · Accepted Answer

Under corporate law, directors have a duty to disclose any personal interest they may have in transactions proposed to the company they serve. This is to ensure transparency and prevent conflicts of interest. Zaida, owning a one-third interest in the building in question, must disclose this interest to the board and typically would be expected to abstain from voting on the matter to avoid a conflict of interest.

The Freestanding Company Limited Is the Owner of a Number