Undisclosed profits gained by some directors of a corporation as a result of a commercial transaction with that corporation put those directors in breach of their fiduciary duty.

Question

Quizplus · Accepted Answer

Directors have a fiduciary duty to act in the best interests of the corporation and must not take advantage of opportunities to profit at the expense of the corporation. Undisclosed profits gained by directors in a commercial transaction with the corporation would be a breach of this duty.

Undisclosed Profits Gained by Some Directors of a Corporation as a Result