Managers or directors who are engaged in self-dealing or have a self-interest other than that of a corporate fiduciary have:
A) followed the corporate opportunity doctrine.
B) breached the duty of loyalty.
C) a defense based on the business judgment rule.
D) to rely on the breakthrough rule.

Question

Quizplus · Accepted Answer

Managers or directors have a duty of loyalty to act in the best interest of the corporation they represent, and any action that involves self-dealing or pursuing self-interest breaches this duty. Therefore, B is the correct choice. The corporate opportunity doctrine, the business judgment rule, and the breakthrough rule do not apply to situations involving self-dealing or a breach of duty of loyalty.

Managers or Directors Who Are Engaged in Self-Dealing or Have