Smith, a Director of Alfa Industries, discovered a business opportunity mentioned in a foreign magazine that would work well for Alfa in Canada. Rather than bring it up at the next directors' meeting, Mr. Smith takes advantage of it himself. He is in breach of his fiduciary duty to Alfa.

Question

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As a director, Mr. Smith has a fiduciary duty to act in the best interests of Alfa Industries. By taking the business opportunity for himself instead of presenting it to the company, he is breaching this duty.

Smith, a Director of Alfa Industries, Discovered a Business Opportunity