Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

corporate opportunity

Read a random definition: conscripting children

A quick definition of corporate opportunity:

Corporate opportunity means that people who work for a company, like bosses and directors, have to be careful not to take away good business ideas from the company for their own benefit. They have to do what's best for the company, not just for themselves. Sometimes it's hard to know if something is a corporate opportunity or not, but if it's something the company could do and it's related to what the company does, then it's probably a corporate opportunity. People who work for the company have to be honest about any conflicts of interest they have and not try to hide anything. If they do something wrong, they can get in trouble.

A more thorough explanation:

Corporate opportunity refers to the responsibility of senior executives and directors of corporations to not take business opportunities away from the corporation for their own benefit. This means that executives should not use their position within the corporation to benefit themselves at the expense of the corporation.

For example, if a director of a company learns of a potential business opportunity that would be a good fit for the company, they cannot take advantage of that opportunity for their own personal gain. Instead, they must present the opportunity to the company and allow the company to decide whether or not to pursue it.

Courts use various factors to determine whether or not a director has taken advantage of a corporate opportunity. These factors include:

  • Whether the corporation is financially able to pursue the opportunity
  • Whether the opportunity is within the corporation's line of business
  • Whether the corporation has an interest or expectancy in the opportunity
  • Whether the director's actions are in conflict with their duties to the corporation

It is important for fiduciaries to be transparent about any conflicts of interest they may have and to recuse themselves from decision-making where necessary. Courts are more likely to be critical of fiduciaries who attempt to conceal their actions in order to take advantage of corporate opportunities.

corporate officers | corporate raider

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
LSD+ is ad-free, with DMs, discounts, case briefs & more.