Where a director of a corporation appropriates to himself a benefit that should properly be seized upon by the corporation,a trust is established of the benefit for the corporation by the doctrine of corporate opportunity.

Question

Quizplus · Accepted Answer

This statement accurately describes the doctrine of corporate opportunity, which holds that a director who takes advantage of an opportunity that belongs to the corporation breaches his or her fiduciary duty to the company. In these circumstances, a trust may be established for the benefit of the corporation.

Where a Director of a Corporation Appropriates to Himself a Benefit