An agent owes a fiduciary duty to his principal; a director owes a fiduciary duty to the corporation; partners owe a fiduciary duty to the firm and to the other parties. Which of the following is not true with regard to one's fiduciary duty?

Question

Quizplus · Accepted Answer

The statement about a shareholder owning a business that secretly competes with the corporation is not entirely accurate. While it is true that a shareholder owes a duty of loyalty to the corporation, it is not necessarily a breach of fiduciary duty for a shareholder to own or operate a competing business. Rather, the shareholder's duty would be to refrain from using confidential information or trade secrets acquired through his or her relationship with the corporation to benefit the competing business at the expense of the corporation.

An Agent Owes a Fiduciary Duty to His Principal; a Director